Property Investment
8 min read
There’s no hard age limit for getting a mortgage in New Zealand.
You can still buy an investment property in your 50s, 60s and even your 70s.
But that doesn’t mean getting a mortgage later in life is easy.
The older you get, the more questions banks tend to ask about how you’ll afford the mortgage and pay it back.
So, if you’re wondering whether you’ve left it too late … don’t count yourself out just yet.
Here’s a rough guide to how difficult it can be to get a mortgage at different ages.
| Your age | How hard is it? | What banks look at |
| 🟢 40s | Generally easier | Your income, debts and ability to afford the mortgage. |
| 🟢 50s | Generally possible | When you plan to retire and how you’ll repay the mortgage. |
| 🟠 60s | There will be more questions | Your retirement plans, your ‘exit plan’ around how you’ll pay back the loan, and your other assets. |
| 🔴 70+ | Harder, but possible | Strong finances, other assets and a clear plan to repay the mortgage. |
These are general guidelines, not fixed age limits. Every bank has different rules.
And as you will see, your finances can matter much more than your age.
In this article I’ll explain what banks look at when lending to older Kiwis and how you can improve your chances of getting approved, including what I see as a mortgage adviser who’s helped older Kiwis get money to invest.
You're not necessarily too old to invest in property, even in your 60s or 70s. What matters most is whether you can afford the mortgage and have a realistic plan to pay it back.
Banks want to know two things before lending you money:
But it’s not just your age that matters … it’s how long your mortgage runs for.
Banks generally start asking more questions if it looks like you’ll still have a mortgage when you hit an expected retirement age.
Some banks use 65; others use 70.
So, even if you are 50 and take out a 30-year mortgage, the bank may want to know how you’ll pay it back when you retire.
Think of it like this: let’s say you are 60 and want to buy a $500,000 home with a 30-year mortgage.
You have a good job and can afford the repayments today.
When you retire in 5 years you could go from earning a full-time salary to relying mainly on NZ Super.
The bank needs to know you will still be able to afford the mortgage.
That’s why banks start asking more questions as you get older.
There are three things that can make a big difference to your application.
If you’re in your 60s the bank will want to know when you plan to retire.
And the type of work you do can matter.
For example, a lawyer working behind a desk might be able to keep working into their 70s.
But someone doing heavy physical work may find it harder to keep working past 65.
That doesn’t mean one person will automatically get approved and the other won’t.
It just means the bank needs to be confident your income will continue for as long as you are relying on it to pay the mortgage.
Sometimes the bank will ask you to pay off the mortgage more quickly. For example, someone in their 30s might be able to pay off their mortgage over 30 years.
But, if you’re 60, the bank might approve your mortgage on the basis you can repay it in 10 years.
The less debt you have, the easier it can be to get another mortgage.
Let’s say you are 60 and you have paid off your family home.
You have no other debt and want to buy your first investment property.
That’s a good starting point.
But if you’re 60 and still have a large mortgage on your own home, taking on another loan could be harder.
That’s because the bank needs to make sure you can afford both mortgages.
And remember, banks don’t just look at what you’re paying today. They also test whether you could afford higher interest rates.
The more assets you have, the more likely it is a bank will lend to you.
That’s because those other assets can be used as part of your exit strategy if you need to pay off the mortgage.
Let’s say you have $500,000 in shares.
Or perhaps you own another investment property with very little debt.
The bank may be more comfortable lending to you because if you had to you could sell those assets to pay off the mortgage.
When you apply for a mortgage the bank might ask you for something called an exit strategy.
That sounds complicated, but it’s actually quite simple.
An exit strategy is your plan for how you will pay back your mortgage.
Let’s say you are 60 and want to take out a 30-year mortgage.
The bank knows you’re unlikely to keep working for another 30 years, so they want to know how you will pay back the loan once you retire.
The plan could be as simple as this: in 10 to 15 years you might sell the property to pay back the debt.
But you don’t have to be in your 60s for a bank to ask you for an exit strategy.
I helped a 67-year-old investor get a 20-year mortgage. She had 4 rental properties already and her exit plan was clear. She would work for 3 more years, then sell some of those rental properties to pay off the mortgage.
The bank said “yes”. That’s the value of a clear exit plan.
Here’s what banks may and may not accept as an appropriate exit strategy:
| What banks may accept | What banks generally will not accept |
| Selling an investment property you own. | An inheritance you haven’t received yet. |
| Using savings or shares you already have. | A divorce settlement that hasn’t been finalised. |
| Using reliable income or other assets to repay the loan. | A work bonus that is not guaranteed. |
The key is having a realistic plan based on money or assets you can rely on, rather than money you hope to receive in the future.
Yes, I have seen a 75-year-old get approved for a 30-year mortgage. That means he would be 105 by the time the mortgage ends.
Now, chances are he won’t still be making mortgage payments at 105, although he doesn’t plan to sell the property during his lifetime.
Instead, he wants to leave it to his family.
So why did the bank say yes? He had a rock-solid exit strategy.
He has other assets he could sell to repay the mortgage if needed. On top of that, the rent covers the loan.
That gave the bank confidence he could afford the mortgage and pay it back.
Of course, this isn’t a typical example. Not everyone in their 70s is in the same financial position.
But it shows your age alone doesn’t decide whether you can get a mortgage.
There are benefits to investing in property when you are older, but there are also risks.
| Pros | Cons |
| There’s no hard age limit for getting a mortgage. | You may need to explain how you will repay the loan once you retire. |
| You can still borrow money to build your wealth. | You have less time to recover if house prices fall. |
The biggest benefit is that you haven’t necessarily missed your chance to build wealth through property.
Even if you didn’t invest in your 30s or 40s, you may still be able to start in your 60s.
But there is a risk.
If you buy an investment property at 65 and plan to sell it at 70, what happens if house prices fall?
You might have to sell for less than you paid or hold on to the property for longer than you planned.
That’s why it’s important to think about how long you can afford to keep the property, not just whether you can get a mortgage.
If you’re in your 50s, 60s or 70s, there are two things worth considering.
A mortgage adviser can help you work out which banks are more likely to lend to you.
That’s important, because different banks have different rules.
One bank might be comfortable with your retirement plans while another might not be.
A broker can also help explain your exit strategy and show the bank how you will afford the mortgage.
That can make a big difference to your application.
If a traditional bank says ‘no’, that doesn’t always mean you can’t get a mortgage.
Non-bank lenders can sometimes be more flexible.
They may look at your application differently, especially if you have lots of assets but don’t meet a bank’s usual lending rules.
However, non-bank loans can come with higher interest rates and fees.
So, compare the costs before deciding if this is the right move for you.
Probably not. But just because you can get a mortgage doesn’t always mean you should.
Investing later in life can still help you build wealth, but there are risks.
House prices can fall, interest rates can rise, and rental properties can cost more to own than you expect.
And the closer you are to retirement, the more important it is to make sure you can afford those costs.
So, before you invest think about your finances, your retirement plans and what you want the property to achieve.
Mortgage broker for over 10 years, property investor and Managing Director at Opes Mortgages
Peter Norris, a certified mortgage adviser with 10+ years of experience, serves as the Managing Director at Opes Mortgages. Having facilitated over $1.2 billion in lending for 2000+ clients, Peter is a respected authority in property financing. He's a frequent writer for Informed Investor Magazine and Property Investor Magazine, while also being recognized as BNZ Mortgage Adviser of the Year in 2018 and listed among NZ Adviser's top advisers in 2022, showcasing his expertise.
This article is for your general information. It’s not financial advice. See here for details about our Financial Advice Provider Disclosure. So Opes isn’t telling you what to do with your own money.
We’ve made every effort to make sure the information is accurate. But we occasionally get the odd fact wrong. Make sure you do your own research or talk to a financial adviser before making any investment decisions.
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