Jeremy Andrews from Key Mortgages, said banks could not discriminate based on age, but agreed they had to follow responsible lending rules.
"Often we see banks declining first-home buyers nearing retirement age loans that are similar or sometimes even lower than their rent payments."
He said that was because, if someone needed a longer-loan term to make the loan affordable, they may have to stay in full-time work for the duration.
"That said, there are plenty of mitigants that banks can consider case by case, which are referred to as exit strategies.
"As part of a client's affordability analysis, lenders and mortgage advisers should investigate and consider whether clients are in sedentary jobs and able to continue work beyond retirement age. Some banks can then consider up to 70 years of age, others longer."
He said other things borrowers could think about were whether they could increase payments once dependents left home or clear other debts to increase their ability to pay off the home loan.
Read the full article here:
https://www.rnz.co.nz/news/business/583852/how-old-is-too-old-for-a-home-loan
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