Can You Get a Mortgage Longer Than 30 Years? Find Out Now

Longer loan terms: the maximum mortgage length

Although a 30-year loan is standard in Australia, some lenders do offer longer terms under specific conditions. Rising property prices, especially in Sydney and Melbourne, mean borrowers are increasingly considering extended terms to reduce their monthly repayments. However, longer loans come with strict eligibility requirements and notable trade-offs.

A 40-year mortgage is often the maximum limit in Australia and is generally available only to:

• First-home buyers needing lower initial repayments

• Younger borrowers who can repay before retirement (typically before age 70–75)

• Certain property scenarios, depending on the lender

Important considerations before choosing a longer term:

• Total interest: Extending the term significantly increases interest paid over time.

• Eligibility scrutiny: Lenders examine age, income stability, and financial health more closely.

• Repayment flexibility: Choose loans that allow extra repayments to reduce the term later.

Before committing to a mortgage longer than 30 years, independent advice is crucial. HeyNest connects you with a broker who will assess eligibility and explain the long-term cost clearly across multiple lenders.

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Extending your loan term: pros and cons

Deciding whether to extend your mortgage term requires a balance between short-term repayment relief and the long-term financial impact. While lower repayments make borrowing more accessible, they also greatly increase overall cost.

Pros of a longer term:

• Lower monthly repayments, easing cash flow pressure

• Improved loan affordability, helping meet lender requirements

• More financial flexibility, with lower minimum repayment obligations

Cons of a longer term:

• Higher total interest, often adding tens of thousands extra

• Slower equity growth, delaying wealth building through property

• Age restrictions, as the loan must finish before retirement age

A broker through HeyNest can show exactly how a 30-year term compares to a 40-year term for your loan and whether extending makes financial sense for your goals.

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Alternatives to getting a mortgage longer than 30 years

If your main goal is lower repayments, there are other strategies that reduce financial pressure without adding a decade of extra interest. Many borrowers overlook options that provide relief while still minimizing long-term cost.

Smart alternatives include:

• Interest-only periods, reducing repayments temporarily without extending the full term

• Offset accounts, which reduce interest charged by lowering your effective balance

• Negotiating or refinancing, where even a 0.5% rate reduction can beat a longer loan term

• Loan restructuring, such as moving to a variable loan that may offer a lower starting rate

HeyNest connects you with an independent broker who compares these strategies against extended loan terms, ensuring you choose the option that saves the most money and suits your long-term plan.

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Frequently asked questions

Is a 40-year mortgage common in Australia?

While not the standard, 40-year mortgages are offered by a growing number of Australian lenders, usually to specific borrowers like younger first-home buyers seeking lower initial repayments.

Does extending my mortgage term affect my borrowing capacity?

Yes, a longer term often increases your borrowing capacity because the lower minimum monthly repayment improves your debt-to-income serviceability ratio from the lender's perspective.

Can I shorten my loan term later if I choose a longer one now?

Yes, you can always make extra repayments to effectively shorten your loan term, provided your loan product doesn't have strict early repayment penalties.