Looking for financial flexibility as a mature age property investor? Investing over 50 is easier than ever.

Home Loans | 21 Mar, 2024

Recent Australian Taxation Office figures have told an interesting story. A quarter of all Australia’s property investments are held by a mere 1% of taxpayers. And a clear majority of those investors are over the age of 50.

This means that there’s a huge proportion of property investors that are in the ‘mature age category’ when it comes to how they are viewed by lenders. Or course lenders have always been willing to lend to older bowers in Australia. There’s no maximum age limit in Australia for seeking home loan approval and home loans for older borrowers are regularly approved. However, there can be additional requirements for older borrowers.

Lenders might want the property to have certain features. They might want borrowers to provide additional documentation. And they’ll very likely want to know the borrower’s planned exit strategy.

Another situation that arises is when the interest-only period on an investment loan ends. Traditionally lenders have required borrowers to switch to principal and interest (P&I) repayments on an investment loan after an initial period (this tends to be about five years of interest-only repayments). But this shift often poses a dilemma for older borrowers and those of us investing over 50.

At this point in their financial lives, many mature borrowers have different priorities. They may be more focused on boosting their superannuation, paying down the mortgage on their primary residence or even helping out their children. This conventional model, which would require them to divert vital cash flow towards principal repayments on their investment property, simply doesn’t work with their strategic financial goals.

However, a new loan product is enabling older borrowers to manage this mismatch and better achieve their long-term financial goals.

Introducing Retro Thrive

graphic about retro thrive investing over 50 from AGL website showing happy older couple smiling and laughing with the words 'thrive in your retirement years'

AFG Home Loans created the innovative home loan product Retro Thrive which is designed to cater to mature-aged borrowers. And it is reshaping the future of investment lending to older borrowers in Australia. This loan product is tailor made for investors aged 50 and above who are transitioning from interest-only borrowing to P&I repayments.

Retro Thrive gives Australian borrowers aged 50 to 75 years who have at least a minimum of 35% equity in their residential investment the chance to sign up for an interest-only term of up to 40 years.

Age limitations do still apply. And the life of the term will decrease in line with the increased age of the borrower. However, Retro Thrive gives older borrowers much more flexibility in achieving their personal financial strategies.

This is a major win for mature investors who would rather redirect their cash flow to their super, shares or paying off their primary residence. And who don’t want to be strongarmed into paying down the principal of their residential investment property!

Key features

  • Purpose. Specifically designed for residential investment borrowers and caters exclusively to borrowers looking to refinance.
  • Eligibility age. Targeting investors between the ages of 50 and 75. This focus ensures that mature investors aren’t sidelined, or struggling under inflexible financial requirements that could undermine their own future plans (including retirement plans).
  • Equity requirements. Applicants must have a minimum of 35% equity in their investment property.
  • Interest-only term. In a truly unprecedented move, eligible borrowers can access interest-only repayments for up to 40 years. (This term will reduce in line with the borrower’s age.) This feature is a cornerstone of this product and offers real financial flexibility to borrowers at a time when it is really necessary. And it allows investors to prioritise their cash flow according to their own personal financial strategies without feeling required to divert their money to principal repayments on an investment property.

Is this loan product right for you?

If you’re a seasoned investor facing (or having just gone through) the switch from interest-only repayments to P&I repayments, it’s an excellent time to refinance. And this loan product is an excellent choice for you. It empowers you to make decisions with your money that best suit your own circumstances. And you won’t be constrained by traditional lending models.

Interested in finding out more about investing over 50?

If you’re keen to find out more about investing over 50, get in touch. Our team would love to help you explore the Retro Thrive product. And we have many other opportunities and lenders that are designed for older investors as well.

Looking to refine your investment strategy, enhance your portfolio or get more flexibility in your financial planning? Our team is here to help!

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