A guide for buyers over 50
I am over 50, NZ citizen, and recently divorced. Can I still get a mortgage?
Buying your first home after middle age is not uncommon; many people move in at middle age, divorce, or return to NZ.
My story
I bought my last house after the divorce. Although I had equity in my previous home, I didn’t have enough income to prove I could afford it.
For people over 50, or those with higher lending who may have a tight living budget, a specialist mortgage broker can help you navigate your options.
Boarder income
My mortgage broker advised me to have a boarder agreement with my partner to show the bank additional income to support the mortgage.
Exit strategy options
Unfortunately, not everyone is on the same plane field.
Sam Ludbrook (from the Colab Kiwi) wrote a small article about the subject. His advice is to have a clear exit strategy by explaining to the bank how you would repay the loan if you no longer have a steady income.
Asking friends
This sounds a bit extreme, but other options include raising funds with a friend or setting up a trust with one or two friends in similar situations.
Co- warrantor
You may have a friend or two who can act as a guarantor for the lender/bank. If you can’t pay for a certain period, the bank may begin recovering funds from your guarantor.