Average Mortgage for 50‑Year‑Old in Australia – What to Expect

Average mortgage for a 50 year old in Australia

For Australians approaching retirement, the mortgage balance they carry can reflect refinances, investment purchases or late-stage home buying. Current trends show that the average mortgage for a 50-year-old in Australia typically ranges between $350,000 and $450,000, with higher balances common in Sydney and Melbourne due to elevated property prices.

Key factors influencing this average include:

• Location: Metropolitan areas vs regional markets.

• Property type: House vs apartment.

• Loan purpose: Owner-occupied vs investment.

• Income and equity: Existing home equity and borrowing power.

As retirement gets closer, lenders become more focused on debt servicing capacity. An independent broker can help you navigate age-specific lending rules and ensure you’re assessed based on your financial strength, not your age. HeyNest connects you directly with brokers skilled in these criteria.

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Key lender criteria at age 50+

Applying for a home loan past age 50 brings additional scrutiny, mainly around how the loan will be repaid before or during retirement. Lenders want confidence that the loan term and repayment plan fit your income timeline.

Two essential lender considerations are:

• Loan term: Many lenders prefer loans to be repaid before age 70–75. A longer term at age 50 usually requires strong proof of income stability.

• Exit strategy: You must show how the loan will be repaid after retiring. Acceptable evidence includes:

  • Superannuation balances

  • Investment income (rent, dividends)

  • Sale of assets such as property

Because each lender applies these rules differently, working with a broker, such as those found through HeyNest, can help match you with policies that align with your goals and timeline.

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Strategies to improve your application

If you’re seeking a mortgage at age 50+, presenting a strong financial profile can help you secure approval and competitive rates, even with a shorter repayment window. Key strategies include:

• Boost your deposit/equity: Aim for an LVR under 80% to avoid LMI and appear lower risk.

• Reduce existing debt: Lower personal debt improves borrowing capacity.

• Check your credit score: Remove errors and maintain a clean record to strengthen your assessment.

• Provide clear exit strategy documents: Lenders expect detailed, professional evidence of how the loan will be repaid post-retirement.

A local broker on the HeyNest platform can help structure your finances, prepare documentation and target lenders suited to borrowers in their 50s, ensuring you secure the best terms for your mortgage.

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Frequently asked questions

Is it harder to get a mortgage at 50 in Australia?

It is not necessarily harder, but lenders apply stricter scrutiny to the repayment timeline and require a clear, documented exit strategy proving the loan can be repaid upon retirement.

Can I still get a 30-year loan term at 50?

Yes, but the lender will require substantial evidence of your income capacity extending into your 70s, or a very robust post-retirement strategy, to approve a term of that length.

Does Superannuation count as income for a loan?

Generally, no. Superannuation is primarily considered an asset for the exit strategy (repaying the loan later), not as regular income for current loan serviceability, unless you are already drawing a pension from it.