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Pensioner Home Loans

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.

home loans for pensioners

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.

Nov 29, 2012pensionerloansassistance
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Comments: 23
  1. mark connor
    6 years ago

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

    ReplyCancel
  2. darriel mcbride
    6 years ago

    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 .

    ReplyCancel
    • Admin
      6 years ago

      Hi Darriel,

      Possibly give http://www.financialcounsellingaustralia.org.au/Corporate/Find-a-Counsellor a go as they have lots of resource at their finger tips and you should be able to find a service for you in your area.

      Regards,
      PLA

      ReplyCancel
  3. Rob
    6 years ago

    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.

    ReplyCancel
    • Admin
      6 years ago

      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%.

      Regards,
      PLA

      ReplyCancel
  4. Susan
    6 years ago

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

    ReplyCancel
  5. Crystal foster
    6 years ago

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

    ReplyCancel
  6. Anto
    6 years ago

    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.

    ReplyCancel
  7. Anto
    6 years ago

    Is this web site still in use???

    ReplyCancel
    • Admin
      6 years ago

      Yes it is, how can we help you

      ReplyCancel
  8. silcon
    6 years ago

    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?

    ReplyCancel
  9. vin
    5 years ago

    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?

    ReplyCancel
    • Admin
      5 years ago

      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.

      Regards

      ReplyCancel
  10. amy
    5 years ago

    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.

    ReplyCancel
    • Admin
      5 years ago

      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.

      Regards

      ReplyCancel
  11. Jenny
    5 years ago

    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

    ReplyCancel
    • Admin
      5 years ago

      Hi Jenny,

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

      Regards

      ReplyCancel
  12. Amanda
    4 years ago

    Hi there, i finished paying off a block of land a year ago and now need a loan to build on it . Can you help me out please?

    ReplyCancel
  13. Rina
    4 years ago

    Hi, I am on disability pension and my son is my carer and is 23. We are buying a land for $305,000.00 and want a loan for $260,000 to construct on a government released land. There is a time limit to build . Is there anyone who will lend to us on benefits. thanks in advance.

    ReplyCancel
  14. Adele Murtagh
    3 years ago

    Hi, My partner is on a permanent Disability Pension and I receive Carers Pension and Allowance. We have an opportunity to puchase a property for $111000. Deposit we have is $7500. After phone banks and brokers noone will look at us. We have good credit ratings and credit history. Please help. The option to buy this property closes in Jan 2018….

    ReplyCancel
  15. Kathleen Jacobson
    2 years ago

    hi l have a question to ask you l am on a disability pension and l am deaf when to see the bank and they are not being truefull to me and l have done what they ask me to do now l have put little money on a block and paperwork now l have to find way to borrow some money to move my grannyhouse onto my block as the bank has stuff me around what can l do $

    ReplyCancel
  16. JAMES ERNEST RAINSFORD
    2 years ago

    First Home Owner’s Grant (FHOG). is no longer available for pensioners, only new first home buyers, so the home has to be a new home.

    ReplyCancel
  17. Ruth
    8 months ago

    I am on an aged pension and have been for 1 year. I would like to purchase a home for $70000 in a small Queensland town. Is there any company that does home loans for pensioners.

    ReplyCancel

Leave a Reply to Susan Cancel reply

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