Pensioner Home Loans

29. November, 2012 Articles 17 comments

Once you have retired and are living on a pension, it is often difficult to secure a home loan. Many investors and lending agencies are unwilling to assist with home loans for several reasons. First, they fear that the pensioner, depending on age, will die before the home is paid off and no one else will be able to pay the outstanding debt. Secondly, the income level is not likely to change so if they get into financial trouble, there is no additional money to bail them out. Adding to their concerns, many retirees tend to have a low fixed income and possibly impaired credit. Fear not, however, there is some hope for those pensioners wanting to purchase a home.

Below is a list of some of the more popular options available. It is also highly recommended to check your State/Territory government websites to see what incentives they may have in place as these can be different depending on where you live. Visit our Helpful Resources section for links to useful government websites.

Prove Your Worthiness

In order to prove your worthiness to purchase a home, you must present yourself as financially stable. By having active credit and being a financial citizen with a regular source of income, the bank will view you as someone eligible for a pensioner’s home loan. If you can show that you have money for a down payment and fees, this may help. If you already own other properties of any kind, these may be used as collateral for the advances towards the home loan.

Know Your Entitlements

If this is the first time you are purchasing a home, see if you qualify for the federal government’s First Home Owner’s Grant (FHOG). If you meet the eligibility under the scheme, you may receive up to $7000 for being a first time homeowner. This can help with your deposit and home loan fees. There may also be state bonuses available to you. *note: this amount can change based on State or Territory and additionally can change based on government.

The Access Home Loan Scheme can help a pensioner that is disabled to buy a home. With a deposit of 2% or $2000; you may be able to purchase a home for $412, 000 or less. In order to qualify you must have an impairment that is permanent, good credit history and rental history, owe no money to the Department of Housing and Keystart, and meet the lending criteria. With this loan you can borrow as much as your income and other commitments allow and the interest rate will be variable.

If you are concerned about your banks using your income as a disqualifier see if you qualify for a Low Doc or No Doc loan. This means that very little documentation will need to be provided in order for you to be approved for a mortgage. With this loan you simply state your income and assets. You may even be able to pick your own interest rate. Remember if you choose this type of loan you can only borrow 80% of the value of the home and the interest rate may be higher.

For a pensioner, there are obstacles that must be overcome in order for them to buy a home. For pensioner home loans you must prove yourself credit worthy, and financially stable. You can look into many entitlements like the First Homeowner’s Grant, The Access Home Loan Scheme, or a Low Doc or No Doc Loan. Regardless, of which type of loan you get, make sure you have reviewed your finances and can comfortably make your payments. Purchasing a home you cannot afford is worse than renting, so sit down, review the numbers, and choose your home loan wisely.


About author
  1. mark connor

    5 / 9 / 2014 2:54 am

    i wish to apply for a home loan. im 51 on permanent disability support with money in term deposit. thank you


  2. darriel mcbride

    6 / 16 / 2014 4:00 am

    hi im needing some info on buying a home . under 150.000 im a disable lady my son is my carer .i am deaf with assistance dog s..2 .cats we cant find a rental with animals .some one told me there are disable loans out there .we both are on pensions .


  3. 8 / 6 / 2014 5:42 am

    I am on a carrer pension as well as family tax a & b, my 28 yr old daughter is on a disability pension and we both qualify for the first home owners grant, we would like to build owe house with Metricon homes with a deposit of $2000.00, are we able to do this.
    regards Robin.


    • 8 / 21 / 2014 12:24 am

      Hi Robin,

      Unfortunately we are unfamiliar with Metricon homes and their sales criteria. We’d suggest contacting them and possibly your nearest free financial counsellor for more information. However, whilst $2000 is a lot of money, most home deposits require a minimum of 10%.



  4. Susan

    8 / 25 / 2014 1:29 am

    Need a home loan for &150,000 please call me asap


  5. Crystal foster

    9 / 21 / 2014 10:04 am

    Hi just would like to know if single pensioners can receive a home loan???
    If so do I need a deposit.
    Thanks :)


  6. Anto

    11 / 4 / 2014 5:51 am

    We are 2 pensioners (mother and son) looking to borrow about $200K. We have an annual combined income of about $42K and have $50K deposit. My mother is 78 and I am 46. We are having trouble finding a lender due my mother’s age. This would be our first home.


  7. Anto

    11 / 10 / 2014 8:03 am

    Is this web site still in use???


    • 12 / 3 / 2014 9:14 pm

      Yes it is, how can we help you


  8. silcon

    12 / 10 / 2014 10:04 pm

    Hi I have 150.000 thousand deposit my husband and I on pensions he is 69 I am 59 years of age we also got permanent part time work last 2 year’s what are the chances to borrow another 200.000 dollars?


  9. vin

    3 / 10 / 2015 5:15 am

    Hi im a mother of 3 i dont work my partner is on a carers all we would like to barrow is 120000
    Havent found any one that will lend us money i dont understand why with the price of rent these days?


    • 5 / 20 / 2015 11:31 pm

      Hi Vin,

      That is a large some of money and most banks or lenders will require the borrower to have a strong financial standing including full-time employment and great credit or collateral.
      Try speaking with a free financial counsellour who may be able to provide you with more options.



  10. amy

    3 / 26 / 2015 8:26 am

    I on a carers pensions and I would to get a house loan.i am looking at place for 140,000. What do I need for a deposit. And who can I go and see.need a house quick.


    • 5 / 20 / 2015 11:38 pm

      Hi Amy,

      Each lender has its own criteria. The more deposit you have the better as you may get a better rate and will be able to avoid mortgage insurance. The easiest thing is to speak to your actual bank or a mortgage broker as they will have access to numerous loans from multiple lenders.



  11. Jenny

    4 / 18 / 2015 7:51 am

    My husband and I are now both on Disability pensions. I am 61 and he is 62. We have an investment property with a mortgage of approximately $190,000. We hope to sell this and buy a low priced property in the next 2 years or so. We may need to borrow about $25,000 at the most. Who would give us a loan and what would the repayments be roughly. Our pension is now approximately $1360 a fortnight with no other debt. We receive rent of $340.00 per week which covers rates, mortgage and levies. However this property would hopefully be sold. We also have a caravan which will sell for at least $40,000


    • 5 / 20 / 2015 11:33 pm

      Hi Jenny,

      Have you tried speaking to a broker – they may be in the best position to give you genuine options for your situation.






Your comment:

Add your comment