The short answer is no… but there are some qualifying factors.

In my mind a bank cannot discriminate because of age, but if you’re talking out a 30 year loan at the age of 60 and planning to retire at 65, the bank has a reasonable expectation for you to have an ‘exit strategy’.

What I mean by this is “how will you keep making the payments once retired?” Or will you keep working til 75? Or will your Superannuation be enough to clear the loan?

It’s not an unreasonable question for you to justify how you’ll manage the debt. It could be as simple as supplying your superannuation statement or just explaining the nature of your particular type of work.

If your strategy is reasonable then why wouldn’t the bank/lender approve the loan? We just have to paint a solid picture for them, but also to be realistic with yourself as to how you’ll manage down the track.

For people with investment properties it’s easier still as they may just sell a property to reduce or clear any debt. Another option really that doesn’t wipe out your Superannuation.

In the end you have to sleep at night with the decisions you make, but if I can do anything to help make that process a little clearer, even if it’s just me playing devil’s advocate, it’s worth consideration.

Do it right the first time.

Best wishes.