Borrowing in Your 50s and 60s With High Assets

Key Takeaway

Older Australians in their 50s and 60s with strong assets but peaked or modest income can still borrow if they prove serviceability, document a realistic exit strategy, and structure loans conservatively. Lenders must test repayments at least 3 percentage points above current rates under APRA rules, and borrowers should also target total repayments under 30–35% of after‑tax income. Practical actions this week include mapping assets and income, choosing terms that align with retirement age, and formalising downsizing or investment sale plans.

You can absolutely borrow in your 50s and 60s when your assets are high and income has peaked, but only if you give banks two things: clear proof you can afford the loan now, and a believable plan to clear or reduce it before or soon after retirement. That means tightening your income story, choosing the right loan term, and documenting your exit strategy up front.

Here’s how to get decision‑grade clarity this week.

Diagram of borrowing strategy for older Australian homeowners Turning strong assets into a clear exit strategy is the key to borrowing safely in your 50s and 60s.

1. How banks really assess older borrowers

Lenders don’t have a hard age cut‑off, but from roughly 50 onwards they shift the question from “Can you afford this now?” to “What happens when you stop working?”

Key points they look at:

Income strength and stability – salary, business income, pensions, investments.
Remaining working life – your realistic retirement age, not a fantasy 75.
Debt profile – total limits across home, investment and business loans.
Exit strategy – how the loan will be repaid or reduced when work stops.

Under APRA guidance, banks must test your repayments at an interest rate at least 3% above the actual rate.[8] In practice, that often means modelling repayments at 8–9% even if your rate starts with a 5.

As a safety check, aim to keep total home and investment loan repayments under roughly 30–35% of your after‑tax income at that stressed rate.[1][3][4]

Quick example

Loan: $1.5m over 25 years, 6.0% P&I (tested at 9.0%).
Monthly repayment at 9.0% ≈ $12,580.
To stay near 30% of after‑tax income at that stressed rate, you’d want net household income of at least ~~$42k per month (~~$504k per year).

If your income is lower but your assets are strong, the structure and exit strategy become critical.

2. Turning assets into usable borrowing power

Being asset‑rich doesn’t help unless you turn some of that into recognisable income or a clear exit.

Common levers:

Investment property – rental income (often shaded by 20–30%) plus potential sale as an exit strategy.
Share portfolios – regular, evidenced dividends help; relying on ad‑hoc sell‑downs usually doesn’t.
Trusts and companies – lenders will use distributions and company profits if they’re consistent and well‑documented.
Super/SMSF – generally can’t support your home loan directly, but SMSF pensions near or after 60 can support downsizing plans.

If your structure is messy or income is “all over the place”, fix that first. Articles like "Making Complex Income Work For You On A Home Loan" and "Structuring Trust, Investment and SMSF Income For Big East‑Side Loans" walk through how to present trust, company and portfolio income in a way banks accept.

Action for this week:

List each asset over $50k (property, shares, cash, business interests).
Next to each, write either “income source” (rent, dividends) or “exit asset” (can be sold to clear or reduce the loan).
If something is neither, it probably won’t help your application.

3. Exit strategy: the non‑negotiable for 55+ borrowers

For borrowers in their 50s and 60s, exit strategy is often more important than income level. Acceptable exits usually include: - Downsizing the home – selling a high‑value home later to clear or slash debt. - Selling a specific investment property – ideally identified up front in the loan notes. - Using maturing investments – term deposits, vesting bonuses, share plan maturities (with evidence). - Aggressive principal reduction – demonstrating the debt will be pushed down to a low level before retirement. Unacceptable exits: vague statements like “We’ll just sell…

Frequently asked questions

Can I get a home loan in my 60s if I plan to retire soon?▾

Yes, but the lender will focus heavily on your exit strategy and post‑retirement position. They’ll want to see either that the loan will be cleared or reduced to a low, affordable balance by retirement, or that you have a clear plan such as downsizing or selling an investment. Strong assets and documented income streams can offset modest employment income if the story hangs together.

Do banks have a maximum age limit for mortgages in Australia?▾

Most Australian banks don’t set a strict maximum age, but they do require that the loan remains affordable into retirement. That means they look at your current age, realistic retirement age, employment plans and assets. If the term extends well past retirement, they will usually require a detailed exit strategy and may shorten the effective term or ask for faster principal reduction.

How does being self‑employed affect borrowing in my 50s?▾

Self‑employed borrowers in their 50s and 60s are scrutinised on both business stability and personal income patterns. Lenders usually want at least two years of financials, and they may shade add‑backs or one‑off profits. Structuring a consistent salary or drawings pattern and coordinating with your accountant before you apply can significantly improve borrowing power while still keeping tax efficient.

Speak with a specialist advisor

Confidential consultation, bespoke advice for your situation.

How to Safely Borrow in Your 50s and 60s With High Assets