FINANCING Q&A FOR OLDER BORROWERS

Is home-loan financing from traditional lenders hard to get? According to Boomer, while lenders can’t discriminate on age (although they can take it into account), they do have regulatory recommendations to follow, opening the way to look at factors like when you plan to retire. As a guide: • At 50, they’ll want to know your retirement plans.

• By 55, they will likely want an ‘exit strategy’ on how you will pay back remaining debit.

• By 60, you could potentially be considered ‘too risky’, unless there’s another asset, such as an investment property, that could be sold if needed to pay back the loan. There can also be stricter financing terms where, for one, you may not be eligible for interest-only payments.

How much can I borrow as an older borrower? It depends on your personal circumstances. To start, use the eligibility checker on the Boomer website.

Is it risky to take out a reverse mortgage? Reverse mortgages let you stay in your home, using your equity as security for the loan and repaying the debt and capitalised interest at a later date (when the home is sold). Regular repayments are not required, but are possible. It’s a loan type that has been criticised historically – and like all financial commitments, it needs careful review – but modern protections include the No Negative Equity Guarantee, which stops borrowers owing more than their home is worth.