Can anyone tell me what would happen in the event that I had mostly paid off my loan, my age was nearing retirement and I wanted to draw back some of my equity. Would the bank stop me because of my age or would they limit the amount I can take.
No lender can legally prevent you from borrowing money based on age alone. If you meet all other requirements, you are eligible for exactly the same loan as a comparable 30 year old (ie: 30 year loan term). I would use a broker so they can go to bat for you if the lender tries to decline your loan on other grounds as an excuse. They usually look for another way out.
Good luck with it all.
Robert Bou-Hamdan
Mortgage AdviserAlso, you may even consider a reverse mortgage – these mostly do disciminate on age -ie, you have to be at least 65yrs (or something like that) to get one – these offer a number of options –
– lump sum payment
– monthly pmt to supplement other income streams
– all of the abovecheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbane60 years is the minimum now. I would probably steer clear of these as they just eat into your assets so less is available for your estate. Also, the younger you are, the less you can get. For example, at age 60, the maximum LVR would be around 10%.
Also, age limits relate to the youngest person living in the home.
Robert Bou-Hamdan
Mortgage Adviser
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