How Age Impacts Borrowing Capacity in NSW

A Guide for Older Buyers Planning Investments or Downsizing

If you’re an older buyer in NSW—whether you’re planning to invest in property or downsize into something easier to manage—it’s important to understand how age can impact your borrowing capacity. Lenders look closely at your stage of life, income sources, and future plans before approving a loan.

Why Lenders Consider Age

Banks and lenders have a responsibility to ensure you can repay your loan comfortably. For borrowers over 50, here’s what that often means:

• Shorter loan terms: Instead of a 30-year term, you may be offered 10–20 years.
• Income checks: Lenders assess how reliable your income is—whether it’s from employment, pension, rental returns, or superannuation.
• Exit strategies: They want to see how you plan to clear the debt in retirement, such as through downsizing, super withdrawals, or selling an investment property.

How This Impacts Borrowing Capacity

1. Smaller loan approvals – A shorter loan term usually means higher repayments, which reduces borrowing limits.
2. Asset-based assessments – Having a solid asset base like a paid-off home or strong savings can help, but lenders may still lend conservatively.
3. Investment vs. downsizing – Rental income may support an investment loan, but age is still factored in as a key risk.

Strategies for Older Borrowers

• Use Your Equity: Access the equity in your current home to strengthen your position.
• Consider Joint Borrowing: If applying with a younger partner, lenders may offer longer terms.
• Be Clear on Your Exit Plan: Showing a strategy for how the loan will be repaid builds lender confidence.
• Work With the Right Broker: Some lenders are more flexible with older borrowers than others.

Where Mortgage Planning Meets Property Search

At Truth Group, I don’t just help you with the finance side. Mortgage planning is about putting together the right loan structure for your stage of life—but the loan is only part of the story.

I also act as a buyer’s advocate, helping you search, shortlist, and secure properties that match your goals—whether it’s downsizing, building an investment portfolio, or leveraging your assets for future security. This dual approach means you’re not left juggling the finance and property search separately—I bring both together to give you a clear path forward.

Final Thoughts

Age doesn’t need to hold you back from achieving your next property goal in NSW. With the right plan and the right property strategy, you can still move forward with confidence.

👉 If you’re at the other end of the spectrum and just starting out, check out our guide on the Top NSW Suburbs for First-Time Home Buyers in 2025.