Home loans later in life: can you still get approved in NZ?

As mortgage brokers, it’s a question we’re hearing more often.

We’re increasingly working with clients at a later stage of life who are still working, still earning, and still wanting to make property decisions, whether that’s upgrading, building, refinancing, or helping family out.

A common theme is uncertainty. Many feel they may not qualify, or that they’ve left things too late.

In some cases, they’ve already approached their bank and been declined.

If that’s you, don’t despair.

Policy can vary quite a bit from bank to bank, and how a deal is presented and structured can make a meaningful difference.

Why home loans can be harder later in life

The main issue is usually the length of loan term and whether the repayments are manageable.

Banks often apply shorter loan terms for borrowers over a certain age, particularly where the lending would extend beyond age 70. A shorter term means higher required repayments, which can make repayments harder on paper.

How we can improve your chances of getting approved

Where there is a clear and well thought out exit strategy, lenders can often be more flexible.

That may allow us to structure the lending over a longer term, sometimes 25 years or more, which can significantly improve affordability.

Common examples of exit strategies include:

• Downsizing to a smaller home on retirement

• Selling an investment property 

• Sale of other assets

The key is showing the bank/lender how the loan will be repaid once employment income reduces or stops.

Home loan options in retirement (including reverse mortgages)

It’s also worth being aware of reverse mortgages.

These are generally more expensive than standard home loans, but they can be a useful option where income no longer supports traditional lending.

In the right situation, they can allow borrowers to remain in their home and access equity without needing to sell.

Final thoughts

Every situation is different, and there’s no one size fits all answer.

But if you’ve been told “no”, or you’re unsure whether it’s possible, it’s often worth getting a second opinion.

At Colab, we specialise in working through these more complex scenarios and finding a structure that works.

If you’d like to talk things through, feel free to get in touch. We’re always happy to workshop your situation and give you a clear view of what might be possible.