Can I Get a Mortgage If I’m Retired in Australia? (2026)

Yes — retired Australians can get home loans, but the assessment is different from working applicants. Lenders focus heavily on retirement income sources, asset levels, and the ability to service repayments from income that is typically lower than pre-retirement earnings.

The Key Challenge for Retirees

Retirees face a specific challenge: most home loans require regular repayments over many years. Lenders must assess whether your retirement income is:

Sufficient to meet repayments (serviceability)
Reliable enough to continue over the loan term
Sustainable — not likely to be depleted

Unlike working borrowers whose income is assessed from payslips, retired borrowers must document income from multiple potential sources.

Income Sources Lenders Accept for Retired Borrowers

Income source	How it is assessed
Superannuation pension (account-based pension)	Regular pension payments from your super fund; documented by fund statement
Age Pension	Centrelink pension payments; confirmed by Centrelink statement
Investment income (dividends, interest)	Tax returns; bank statements; investment portfolio statements
Rental income from investment property	Rental agreements; tax returns; 2-year history typically
Business income (if still receiving income from business sale, vendor finance, etc.)	Documentation of income stream
Defined benefit pension	Government or corporate pension statements

Superannuation account-based pensions: If you are drawing a regular income stream from your super, this is generally accepted as income. The lender may want to see the super balance to confirm the income stream is sustainable (a small balance making large withdrawals would not be a sustainable income over 20 years).

Asset-Based Lending — The Alternative Assessment

Some lenders — particularly non-bank lenders and mortgage managers — use asset-based serviceability assessments for retired borrowers. Instead of solely looking at income, they assess:

Total liquid asset value (super, savings, investments)
Loan amount relative to assets
Whether assets could service and repay the loan over the proposed term

Example: A retiree with $1.5M in super and savings wanting a $400,000 loan may qualify based on assets alone, even if their annual income is relatively modest.

Not all lenders use this approach — identifying those that do is where a broker specialising in senior lending adds value.

Reverse Mortgages — An Alternative to a Standard Loan

A reverse mortgage is a specific product for Australians aged 60+ (some lenders 65+) that allows you to access home equity without making regular repayments:

Interest capitalises (is added to the loan balance)
Loan is repaid when the property is sold (typically on death or permanent move to aged care)
You remain the owner of the property
No regular repayments required

Consumer protections for reverse mortgages in Australia: Under the National Consumer Credit Protection Act, reverse mortgage lenders must:

Provide a Negative Equity Protection guarantee (you cannot owe more than the property is worth)
Provide clear disclosure of projected debt
Provide independent legal advice requirements in some cases

ASIC MoneySmart has detailed guidance on reverse mortgages — always seek independent financial advice before proceeding.

Reverse mortgages are not right for everyone — they reduce the estate value over time and can affect pension eligibility. However, for asset-rich, income-poor retirees, they provide a way to access equity without selling.

Tips for Retired Borrowers Applying for Standard Loans

Maximise documented income: Ensure all income sources are clearly documented — super pension statements, Centrelink letters, investment income records.

Larger deposit or lower LVR: A larger deposit reduces the loan amount, making serviceability easier to demonstrate. Retired borrowers often have significant equity in existing property.

Shorter loan term: A 10–15 year loan term with higher repayments (but lower total interest) may be more practical than a 30-year loan in retirement.

Work with a specialist broker: Not all brokers are equally familiar with senior lending. Some mortgage brokers specialise in this area and know which lenders have the most flexible policies for retired borrowers.

Frequently Asked Questions

I’m 68, retired, and want to buy a smaller unit. Is this possible?

Yes — many lenders will consider this. The key factors are your income (super pension, Age Pension, other income), your deposit or equity in your existing property, and the loan amount you need relative to your income and assets. A broker familiar with senior lending can identify the right lender.

My Age Pension is my only income. Can I get a home loan?

This is challenging. The Age Pension alone — typically $30,000–$37,000/year for a single person — may not be sufficient to service a significant home loan. A smaller loan combined with a large deposit may be achievable, or a reverse mortgage product may be more suitable. Speak with a financial adviser.

Will a standard home loan affect my Age Pension?

The home you live in is exempt from the Age Pension assets test. If you borrow to purchase a home and live in it, the property’s value is not counted. The loan itself (debt) also reduces your net assets. A financial adviser can help you model the impact on your pension entitlement.

This article provides general information about home loan options for retired Australians. Lending policies vary significantly. For major financial decisions in retirement, speak with a licensed financial adviser. Find one through MoneySmart.