Home Loans for Pensioners

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What different scores mean

9+

Excellent

These home loans offer low costs, coupled with a host of features, giving the best overall value.

7+

Great

These home loans may have slightly higher interest rates or fewer features but overall, a competitive offering.

5+

Standard

Usually the home loans would offer above average rates. They may still include some competitive features.

0+

Basic

Higher costs and/or fewer features.

Getting a loan as a pensioner always comes down to the lender's eligibility criteria and your individual circumstances. This includes your savings and other sources of income, whether you have outstanding debts or not and the amount you are hoping to borrow.

How can I get a home loan on a pension?

If your only source of income is the pension, then this might limit your options. The pension amount is lower than the income level most lenders require you to earn in order to repay a loan.

However, there are several ways a pensioner can apply for mortgage finance. The best option for you depends on your financial situation.

1) Apply for a standard home loan

If you have forms of income from other sources or you are only borrowing a small amount, you may be able to apply for a home loan like any other borrower. If this is your situation you might be able to get a competitive interest rate, so be sure to compare your home loan options.

2) Apply with a specialist lender

There are lenders who specialise in providing finance solutions to borrowers in difficult or unique circumstances. There are even lenders who focus entirely on older borrowers. These types of lenders provide loans known as specialist or non-conforming loans.

Non-conforming lenders may be able to help where the big banks can't. But they often charge higher interest rates and fees.

Keep in mind that many lenders that specialise in "senior's finance" don't actually lend to pensioners who don't already own property. Instead they offer reverse mortgages and other forms of equity access to older Australians who already own property.

3) Talk to a mortgage broker

Perhaps the best option for pensioners looking for a home loan is to get in touch with a mortgage broker. This is because mortgage brokers specialise in helping borrowers in unique circumstances and they have access to a wide panel of lenders.

A broker can help you look for loans and lenders that match your requirements. Their services are typically free to you because the lender you choose will pay them a commission.

What documents do pensioners need for a home loan?

As a pensioner you will need to provide a few extra documents in addition to the standard documents in a mortgage application. Every lender has their own requirements but you'll generally need to provide the following:

• Evidence of funds to complete the deposit.
• Bank statements showing Centrelink benefits being paid into your bank account (i.e. some lenders require 6 months of recent bank statements).
• Letter from Centrelink (or other relevant government department) confirming the status and nature of your disability pension.

What about borrowers on disability pensions and veterans' pensions?

Disability Support pensions

Generally, lenders consider a disability pension to be a valid form of income, meaning they treat a home loan application for someone on a disability pension just like any other application.

Most lenders will review your application on a case-by-case basis. Your eligibility for a home loan will depend on the amount of income you receive and how much of this can be used to service a loan.

Other factors including your age, assets and debts will be assessed by a lender on an individual basis.

Veterans' pensions

Many lenders may accept a Veterans' Pension as a source of income for a home loan. This applies if you are receiving:

• War Widow's or Widow's Pension
• Service Pension
• Veterans' Affairs Age Pension

Additionally, lenders may accept the Department of Veterans' Affairs Incapacity Pension as a source of income. In order to demonstrate your pension as a source of income for a home loan application, you'll need either a current bank statement showing your pension payment, or a current Department of Veterans' Affairs statement.

On Centrelink? You could still get a home loan

Other mortgage types for older borrowers

If you're a pensioner who already owns their own home you have some other finance options. Both reverse mortgages and line of credit loans allow you to borrow money against the equity in your home.

• Reverse mortgages. A reverse mortgage allows you to borrow funds using equity from your home as security for the loan. A reverse mortgage can either be paid as a lump sum, a regular stream of income, a line of credit or a combination of these. No income is needed to qualify and for this reason, the interest rate tends to be higher. You must repay the sum of borrowed money when you sell your home, pass away or move into aged care.
• Line of credit loans. A line of credit is a funding line that uses the equity in your home. It’s an approved amount that you can use a bit at a time or all at once. You loan is approved against a security and you can draw on this loan amount at any time. You only pay the interest on the amount that you use. For example, if you get a line of credit of $200,000 and only use $50,000, you only pay interest on the $50,000. These types of loans can be harder to get, and not all lenders offer them.

Looking to compare loan options?

In the tables below you can compare various finance options, from normal home loans to reverse mortgages and lines of credit. Please be aware that not all of the options presented in the table will be available for pensioners. If you're a pensioner and are looking for expert guidance, contact a mortgage broker for personal advice.

• Reverse mortgages
• Line of credit loans

Compare reverse mortgages

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1 - 5 of 5

Updated regularly

Name	Finder Score	Interest Rate p.a.	Comparison Rate p.a.	Fees	Monthly Payment
Heartland Standard Reverse Mortgage Principal & InterestInterest only50% min. depositOwner-occupier Heartland Standard Reverse Mortgage Principal & InterestInterest only50% min. depositOwner-occupier Go to site Details Fees Pros & cons Product Name Heartland Standard Reverse Mortgage Interest Rate Type variable rate Repayment Type Principal & Interest Interest Only Interest Rate p.a. 9.75% Comp. Rate p.a. 9.78% Minimum Loan Amount $5,000 Maximum Loan Amount N/A Maximum Loan Term Maximum LVR 50% Loan Redraw Facility Yes Offset Account No Split Loan Facility No Fixed Interest Option No Loan Portable Yes Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee $350 Ongoing Fees $0 p.a. Settlement Fee $595 Discharge Fee $495 Pros Lump sum option No application or ongoing fees Cons Settlement fee of $495 Discharge fee of $395	Finder score	Interest Rate 9.75%	Comparison Rate 9.78%	Fees Application: $0 Ongoing: $0 p.a.	Monthly Payment $1,290	Go to site Compare
G&C Mutual Bank Retirees Access Home Loan Interest only60% min. deposit G&C Mutual Bank Retirees Access Home Loan Interest only60% min. deposit Go to site Details Fees Pros & cons Product Name G&C Mutual Bank Retirees Access Home Loan Interest Rate Type variable rate Repayment Type Interest Only Interest Rate p.a. 9.22% Comp. Rate p.a. 9.30% Minimum Loan Amount $200,000 Maximum Loan Amount N/A Maximum Loan Term 30 years Maximum LVR 40% Loan Redraw Facility Yes Offset Account No Split Loan Facility No Fixed Interest Option No Loan Portable Yes Extra Repayments Yes Application Fee $500 Lender's Legal Fee At cost Valuation Fee At cost Ongoing Fees $0 p.a. Settlement Fee At cost Discharge Fee $300 Pros Access your equity You do not need to make regular repayments Cons Borrowing against your equity means you own less of your home's value Borrowing amounts depend on your age and property value	Finder score 4.7 Basic	Interest Rate 9.22%	Comparison Rate 9.30%	Fees Application: $500 Ongoing: $0 p.a.	Monthly Payment $1,232	Go to site Compare
Household Capital Reverse Mortgage Variable Home Loan Principal & Interest50% min. depositOwner-occupier Household Capital Reverse Mortgage Variable Home Loan Principal & Interest50% min. depositOwner-occupier Details Fees Pros & cons Product Name Household Capital Reverse Mortgage Variable Home Loan Interest Rate Type variable rate Repayment Type Principal & Interest Interest Rate p.a. 9.20% Comp. Rate p.a. 9.23% Minimum Loan Amount $50,000 Maximum Loan Amount $1,000,000 Maximum Loan Term Maximum LVR Loan Redraw Facility No Offset Account No Split Loan Facility No Fixed Interest Option No Loan Portable Yes Extra Repayments Yes Application Fee $950 Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $0 p.a. Settlement Fee $0 Discharge Fee $0 Pros Competitive interest rate Flexible repayments Cons There is an application fee	Finder score	Interest Rate 9.20%	Comparison Rate 9.23%	Fees Application: $950 Ongoing: $0 p.a.	Monthly Payment $1,230	Compare
Express Reverse Mortgage Principal & InterestOwner-occupier Express Reverse Mortgage Principal & InterestOwner-occupier Details Fees Pros & cons Product Name Express Reverse Mortgage Interest Rate Type variable rate Repayment Type Principal & Interest Interest Rate p.a. 8.65% Comp. Rate p.a. 8.67% Minimum Loan Amount $20,000 Maximum Loan Amount $50,000 Maximum Loan Term Maximum LVR N/A Loan Redraw Facility No Offset Account No Split Loan Facility Fixed Interest Option No Loan Portable No Extra Repayments Yes Application Fee $395 Lender's Legal Fee Valuation Fee $350 OR > $2m (quote) Ongoing Fees $0 monthly ($0 p.a.) Settlement Fee $395 Discharge Fee $395 Pros Simple reverse mortgage for borrowers who don't need to borrow much Interest rate is lower than most reverse mortgages Cons You can only borrow a limited amount There are several fees	Finder score	Interest Rate 8.65%	Comparison Rate 8.67%	Fees Application: $395 Ongoing: $0 per month	Monthly Payment $1,171	Compare
Heartland Secondary Property Reverse Mortgage Principal & InterestInterest only66.25% min. depositInvestment Heartland Secondary Property Reverse Mortgage Principal & InterestInterest only66.25% min. depositInvestment Details Fees Pros & cons Product Name Heartland Secondary Property Reverse Mortgage Interest Rate Type variable rate Repayment Type Principal & Interest Interest Only Interest Rate p.a. 9.75% Comp. Rate p.a. 9.78% Minimum Loan Amount $5,000 Maximum Loan Amount N/A Maximum Loan Term Maximum LVR 33.75% Loan Redraw Facility Yes Offset Account No Split Loan Facility No Fixed Interest Option No Loan Portable Yes Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee $350 Ongoing Fees $0 p.a. Settlement Fee $595 Discharge Fee $495 Pros $0 application fee Lump sum payment option available Cons There is a $495 settlement fee There is a $395 discharge fee There is a $295 switching fee	Finder score	Interest Rate 9.75%	Comparison Rate 9.78%	Fees Application: $0 Ongoing: $0 p.a.	Monthly Payment $1,290	Compare

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Compare line of credit loans

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1 - 6 of 6

Updated regularly

Name	Finder Score	Interest Rate p.a.	Comparison Rate p.a.	Fees	Monthly Payment
Commonwealth Bank Viridian Line of Credit Principal & InterestInterest only20% min. deposit Commonwealth Bank Viridian Line of Credit Principal & InterestInterest only20% min. deposit Details Fees Pros & cons Product Name Commonwealth Bank Viridian Line of Credit Interest Rate Type variable rate Repayment Type Principal & Interest Interest Only Interest Rate p.a. 10.28% Comp. Rate p.a. Maximum Loan Term Maximum LVR 80% Loan Redraw Facility Yes Offset Account No Split Loan Facility No Fixed Interest Option No Loan Portable No Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $395 p.a. Settlement Fee $200 Discharge Fee $350 Pros Redraw Facility. Flexible spending and repayment options. Cons Establishment fee of $600. There is a $12 monthly service fee. There is a $200 settlement fee. A discharge fee of $350 applies when you close this loan.	Finder score 3.3 Basic	Interest Rate 10.28%	Comparison Rate	Fees Application: $0 Ongoing: $395 p.a.	Monthly Payment $1,349	Enquire Now Compare
Well Money Equity Plus Principal & Interest40% min. depositOwner-occupierOffset account Well Money Equity Plus Principal & Interest40% min. depositOwner-occupierOffset account Details Fees Pros & cons Product Name Well Money Equity Plus Interest Rate Type Variable rate Repayment Type Principal & Interest Interest Rate p.a. 6.16% Comp. Rate p.a. 6.19% Minimum Loan Amount $200,000 Maximum Loan Amount $20,000,000 Maximum Loan Term 30 years Maximum LVR 60% Loan Redraw Facility Yes Offset Account Yes Split Loan Facility Yes Fixed Interest Option Loan Portable Extra Repayments Yes Application Fee $250 Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $0 p.a. Settlement Fee $0 Discharge Fee $300 Pros Competitive variable interest rate 100% offset account Cons You need a large deposit to get this loan This loan has a couple of fees	Finder score 8.9 Great	Interest Rate 6.16%	Comparison Rate 6.19%	Fees Application: $250 Ongoing: $0 p.a.	Monthly Payment $916	Compare
Greater Bank Ultimate Line of Credit Home Loan Principal & InterestInterest only10% min. depositOwner-occupier Greater Bank Ultimate Line of Credit Home Loan Principal & InterestInterest only10% min. depositOwner-occupier Details Fees Pros & cons Product Name Greater Bank Ultimate Line of Credit Home Loan Interest Rate Type variable rate Repayment Type Principal & Interest Interest Only Interest Rate p.a. 8.10% Comp. Rate p.a. Maximum Loan Term 30 years Maximum LVR 90% Loan Redraw Facility Yes Offset Account No Split Loan Facility Yes Fixed Interest Option No Loan Portable No Extra Repayments Yes Application Fee $500 Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $0 p.a. Settlement Fee $180 Discharge Fee $300 Pros Cons	Finder score 6.1 Standard	Interest Rate 8.10%	Comparison Rate	Fees Application: $500 Ongoing: $0 p.a.	Monthly Payment $1,112	Compare
AMP Bank Professional Package Line of Credit Interest only20% min. depositInvestmentOffset account$100K to AMP Bank Professional Package Line of Credit Interest only20% min. depositInvestmentOffset account$100K to Details Fees Pros & cons Product Name AMP Bank Professional Package Line of Credit Interest Rate Type variable rate Repayment Type Interest Only Interest Rate p.a. 7.19% Comp. Rate p.a. 7.43% Minimum Loan Amount $100,000 Maximum Loan Amount $499,999 Maximum Loan Term 30 years Maximum LVR 80% Loan Redraw Facility Yes Offset Account Yes Split Loan Facility Yes Fixed Interest Option No Loan Portable Yes Extra Repayments Yes Application Fee $0 Lender's Legal Fee $295 Valuation Fee Any valuation costs in excess of $550 Ongoing Fees $349 p.a. Settlement Fee $0 Discharge Fee $390 Pros $0 application fee100% offset account Cons There's an annual fee of $349 A $390 discharge fee applies when closing the loan	Finder score 7.9 Great	Interest Rate 7.19%	Comparison Rate 7.43%	Fees Application: $0 Ongoing: $349 p.a.	Monthly Payment $1,018	Compare
Hume Bank Line of Credit Loan Interest only20% min. depositOwner-occupier Hume Bank Line of Credit Loan Interest only20% min. depositOwner-occupier Details Fees Pros & cons Product Name Hume Bank Line of Credit Loan Interest Rate Type variable rate Repayment Type Interest Only Interest Rate p.a. 9.25% Comp. Rate p.a. Maximum Loan Term 25 years Maximum LVR 80% Loan Redraw Facility No Offset Account No Split Loan Facility Yes Fixed Interest Option Yes Loan Portable Yes Extra Repayments Yes Application Fee $600 Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $0 p.a. Settlement Fee $0 Discharge Fee $0 Pros Cons	Finder score 4.7 Basic	Interest Rate 9.25%	Comparison Rate	Fees Application: $600 Ongoing: $0 p.a.	Monthly Payment $1,235	Compare
BCU All-In-One Line of Credit Principal & InterestInterest only21% min. depositOwner-occupier BCU All-In-One Line of Credit Principal & InterestInterest only21% min. depositOwner-occupier Details Fees Pros & cons Product Name BCU All-In-One Line of Credit Interest Rate Type variable rate Repayment Type Principal & Interest Interest Only Interest Rate p.a. 7.74% Comp. Rate p.a. Maximum Loan Term Maximum LVR 79% Loan Redraw Facility No Offset Account No Split Loan Facility Yes Fixed Interest Option No Loan Portable Yes Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $0 p.a. Settlement Fee $0 Discharge Fee $0 Pros Cons	Finder score 6.5 Standard	Interest Rate 7.74%	Comparison Rate	Fees Application: $0 Ongoing: $0 p.a.	Monthly Payment $1,075	Compare

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What is Finder Score?

The Finder Score crunches 7,000 home loans across 120+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.

To provide a Score, we compare like-for-like loans. So if you're comparing the best home loans for cashback, you can see how each home loan stacks up against other home loans with the same borrower type, rate type and repayment type. We also take into consideration the amount of cashback offered when calculating the Score so you can tell if it's really worth it.

Read the full Finder Score breakdown

To make sure you get accurate and helpful information, this guide has been reviewed by Rebecca Pike, a member of Finder's Editorial Review Board.

Written by

Richard Whitten

Editor

Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio

Richard's expertise

Richard has written 540 Finder guides across topics including:

• Home loans
• Property
• Personal finance
• Money-saving tips