What is the oldest age you should buy a home?
Buying a home later in life is increasingly common, and there’s technically no fixed “too old” age to purchase property. Australian law even prohibits age-based lending discrimination. In simple terms, you can legally take out a mortgage at any age if you meet the financial requirements. However, lenders will look closely at your situation if you’re older, especially if the loan would run past a typical retirement age (often considered around 65-75). So while there’s no hard cut-off, practical hurdles start to appear as you age.
70 is the new 50.
Lender Concerns for Older Buyers
Home loans usually last 20 to 30 years, and lenders must ensure you can repay without hardship. The older you are, the harder it can be to get a home loan approved, simply because your remaining working years (and life expectancy) are shorter. Bluntly put, banks worry an older borrower might not live or earn income through a 30-year loan term, increasing the risk of default. As a result, if you’re over about 35-40 and seeking a new mortgage, the bank may ask for an “exit strategy” – a clear plan for how you’ll pay off the loan if you retire before it’s fully repaid. This could mean planning to downsize, sell other assets, or use superannuation to clear the debt later on. In fact, many lenders require written exit plans by your mid-50s, and some start discussing it once you’re over 45. It’s illegal to deny you just for age, but they do need evidence you won’t be stuck in financial hardship.
Typical exit strategies include things like selling the home and moving somewhere cheaper, using investment or superannuation savings, or switching to interest-only and then a reverse mortgage. Essentially, they want to see you have a safety net. If you’re an older borrower with solid finances and a credible repayment plan, many lenders are still happy to approve your loan. You might just face a bit more scrutiny and possibly shorter loan terms (e.g. a 15-year mortgage instead of 30 years, so it’s paid off sooner).
Trends: Older First-Time Buyers
It’s worth noting that buying a first home in one’s 40s, 50s, or even 60s is not as unusual as it once was. The average age of first-home buyers in Australia is now around 36 years, up from just 25 years old in the 1970s. Factors like high property prices and career or lifestyle changes mean many people delay buying. Between 2015 and 2021, the number of first-home buyers aged 40-49 jumped 63%, and those over 50 jumped 56%. So if you haven’t bought a home by your 40s or 50s, you’re certainly not alone – lots of Australians are in the same boat and still successfully purchase homes later in life.
Later-in-life buyers often have some advantages too: you might have higher income or savings, or perhaps an inheritance to help with a deposit. On the flip side, keep in mind your homeownership horizon could be shorter. For example, if you buy at 60, you may only live in and pay off that home for 15-20 years of retirement. It can still be worth it for the security and pride of owning your home, but you’ll want to plan carefully.
Consider Your Retirement Plans
A key question to ask is: do you plan to retire soon, or will you work longer? If you’re willing and able to work into later age, you might manage a mortgage well into your 70s. But many Australians aim to retire around mid-60s. Lenders assume retirement around 65-75, so if your new loan would finish when you’re, say, 85, they’ll definitely ask how that works. This is where showing big superannuation savings or other income becomes important.
Also consider how a mortgage might affect your retirement lifestyle. Ideally, you don’t want to be scraping by on just the Age Pension while still making mortgage repayments. In fact, a worrying trend is more Australians reaching retirement age still carrying mortgage debt. Over the past 20 years, the share of 55–64 year-olds who own their homes outright has nearly halved, meaning many more have mortgages or rent. Some retirees now must use their super or even keep working to pay off home loans. This doesn’t mean you shouldn’t buy later in life – but it highlights why planning for those later payments is crucial so you’re not stressed in your golden years.
Tips for Older Home Buyers
Plan a Shorter Loan Term: If possible, opt for a shorter-duration mortgage (15 or 20 years) or make extra repayments. This ensures you’ll be debt-free sooner, ideally by retirement. Some lenders may insist on this anyway for older borrowers. Use a mortgage calculator to see what repayments you can afford on a shorter term.
Bigger Deposits Help: A larger down payment reduces the loan needed. If you’re older and perhaps have savings or assets, using them to borrow less can strengthen your application. A smaller loan is easier to service on a fixed retirement income later.
Consider Loan Type: You could look at principal-and-interest loans to pay down debt faster. Or if you’re downsizing in a few years, maybe an interest-only period could bridge you until you sell another property – but be careful, as that means the principal isn’t reducing. Specialized senior home loans or reverse mortgages are options too. Reverse mortgages let people over 60 borrow against equity with no repayments until the house is sold, but they have higher interest and reduce your home equity over time. These are complex products best used sparingly or with advice.
Show an Exit Strategy: When applying, explicitly tell the lender your plan. For example, “I will retire at 70, downsize and use the proceeds to pay off any remaining loan,” or “I have X amount in superannuation which I can draw on to clear the loan by age 67.” If you demonstrate a solid, realistic plan, the bank is more likely to say yes.
Budget for Retirement: Make sure you’re not pouring all your money into the house. Keep some savings or super aside. Owning a home can save you rent in retirement, but you’ll still have rates, insurance, maintenance, etc. Ensure those costs plus any loan payments fit into your expected retirement income. You might consider talking to a financial adviser to map this out.
The Verdict: Is There an “Oldest” Age?
There isn’t a strict age limit – people in their 50s, 60s, even 70s do buy homes. The key is whether it makes financial sense for you. Ask yourself: Will I be able to comfortably pay this off, or at least pay for it, during retirement? If yes, homeownership can provide stability and even an asset to leave to family. If not, you might be better off continuing to rent or exploring alternatives (like moving to cheaper housing, or living with family).
Australia’s Age Discrimination Act means a bank can’t flat-out refuse you a loan just because you’re, say, 65. They can, however, refuse if they genuinely believe you can’t afford it – and they have a responsible lending obligation to do so. So it comes down to finances, not a specific birthday.
In summary, you’re never “too old” to buy a home, but the older you get, the more carefully you need to plan. Make sure you have a repayment strategy that aligns with your retirement timeline. Many Australians are buying later in life successfully – just go in with eyes open about the extra hoops and the importance of an exit plan. With solid preparation, even retirees can (and do) become homeowners. There’s a great feeling in knowing the home is yours, at any age!
