Home Loans for Buyers Over 60 in South Sydney, The 2026 Guide
Buying a home or refinancing a mortgage after 60 is entirely achievable in South Sydney, and more buyers in this age group are doing exactly that. Whether you are downsizing from a family home in Randwick to a low-maintenance apartment, purchasing a retirement base near the coast at Maroubra, or releasing equity to help a child onto the property ladder, lenders do have options for you. The lending picture looks different at 60 or 70 than it does at 35, but different does not mean closed.
The South Sydney market gives buyers over 60 real choices. Units in Zetland and Waterloo suit the lock-up-and-leave lifestyle many downsizers want, with unit medians of $968,000 and $939,000 respectively as at Q1 2026. Those who prefer a quieter neighbourhood with more space often look to Maroubra, where the house median sits at $3,000,000 and units at $1,150,000 as at Q1 2026. The key is matching the right suburb and property type to what the right lender will actually approve.
My Finance Agent helps buyers over 60 across South Sydney work through lender policies and compare loans across 60+ lenders to find an option that fits their income, assets and plans for the years ahead.
This guide covers how lenders assess older borrowers, what loan structures suit buyers at this stage of life, which suburbs fit the downsizer and retiree market, and how a broker makes the process significantly more straightforward.
Can buyers over 60 get a home loan in South Sydney?
Yes, and lenders are legally required to assess every application on its individual merits. Age is not a disqualifying factor under Australian credit law. What lenders do assess carefully is the exit strategy: how you plan to repay the loan over its term, given that you may be retired or approaching retirement before the loan matures. Demonstrating a clear, realistic exit strategy is the most important thing a borrower over 60 can do to strengthen their application.
A shorter loan term, a superannuation balance large enough to clear the debt, the sale of a property, or ongoing investment income can all serve as an exit strategy. The range of lenders who are comfortable with older borrowers varies widely, and that variation is exactly why a broker adds value here.
How do lenders assess income for buyers over 60?
Lenders look at what income you have now and what you will have for the life of the loan. The assessment changes depending on whether you are still working, semi-retired, or fully retired.
How different income types are counted:
Employment income (full or part-time): counted in full at most lenders for however long you are still working.
Self-employment income: counted in full, but usually requires two years of tax returns and will be assessed on the lower of the two years at most lenders.
Superannuation pension (account-based pension): counted in full by some lenders, only counted in part by others. The treatment varies significantly between lenders, which is a key reason to compare your options.
Superannuation lump sum (not yet in pension phase): some lenders will count a projected drawdown from a super balance as income; others will not count it at all. Policy differs between lenders.
Investment income (dividends, rental income, managed funds): rental income is typically counted in part (usually around 80% by most lenders); dividend and distribution income is treated differently by each lender.
Centrelink Age Pension: counted in full by lenders who accept it; some lenders are reluctant to rely on it as a primary income source. A broker can identify which lenders are most flexible here.
Family Tax Benefit or other government payments: counted in full at some lenders, only counted in part at others.
The serviceability buffer also applies: lenders assess whether you can comfortably afford the repayments at your actual rate plus 3.0%, the current APRA buffer. On a shorter loan term, this results in higher monthly repayments than the same amount spread over 30 years, so the income assessment becomes more demanding as the loan term shortens.
Which South Sydney suburbs suit buyers over 60?
The right suburb depends on lifestyle priorities: low maintenance, walkability, proximity to family, or a combination. South Sydney has strong options across the spectrum.
Lock-up-and-leave apartments:
Zetland and Waterloo: modern apartment buildings, strong strata management, and easy access to the city. Unit medians of $968,000 and $939,000 as at Q1 2026. Note that some lenders apply more conservative policies in high-density unit postcodes like these, including higher minimum deposits or lower maximum loan amounts relative to the property value. A broker can tell you which lenders do not apply those restrictions.
Rosebery: a quieter, lower-density feel than Zetland with a unit median of $905,000 as at Q1 2026, and a mix of boutique and established developments.
Mascot: strong transport links and a unit median of $881,000 as at Q1 2026, with strong unit price growth of 13.09% over the year.
More space with lower maintenance than a large family home:
Maroubra: popular with downsizers who still want space and a coastal lifestyle. Units at $1,150,000 as at Q1 2026.
Kensington: quieter streets, proximity to Centennial Park, unit median of $988,000 as at Q1 2026.
Eastlakes: a more affordable entry point with a unit median of $755,000 as at Q1 2026 and solid unit price growth of 6.34%.
Ready to find the right home loan structure for your stage of life in South Sydney? We compare home loans from 60+ lenders to find the right fit for your situation. Free service, no obligation. Book a free chat or call (02) 8313-8400
What loan structures work for buyers over 60?
Older borrowers often need loan structures that are different from the standard 30-year principal-and-interest product. The options below are genuine alternatives, each with specific lender policy attached.
Common loan structures for buyers over 60:
Shorter-term principal-and-interest: a 10 or 15-year term keeps the exit strategy clear and can satisfy lender requirements more easily. The monthly repayment is higher, but the loan is retired well within a realistic retirement timeframe.
Interest-only for a defined period: some lenders allow interest-only terms for older borrowers, with a plan to repay the principal from the sale of another property or a super drawdown at the end of the interest-only period. Not all lenders approve this for retired borrowers and the requirements are strict.
Line of credit (equity release): where a buyer owns a property outright or has significant equity, some lenders offer a line of credit secured against that property. Useful for renovation, aged care costs or helping family members.
Reverse mortgage: a specialist product where no repayments are required and the loan (plus compounding interest) is repaid when the property is sold, usually when the borrower moves into aged care or passes away. Available from a small number of specialist lenders. Suited to asset-rich, income-poor situations. Not within our standard home-loan brokerage, but we can point you toward specialist advice.
Guarantor loans: an adult child providing a guarantee can strengthen the application, though both parties need to understand the legal and financial implications before proceeding.
What approval challenges do buyers over 60 face?
The challenges are real but navigable when you understand what each lender looks for. The most common obstacles are the exit strategy requirement, income type, loan term, and the high-density-postcode lending policies that affect many South Sydney apartments.
Common approval hurdles and how they are handled:
Exit strategy documentation: lenders need to see that the loan can be repaid without relying on the borrower living indefinitely. A super balance, investment portfolio, or a property being sold are the clearest exit strategies. A broker can help you document this in the way each lender expects.
Retirement income assessment: account-based pension income is treated very differently across lenders. At one lender, your full pension draw may be counted; at another, only part of it qualifies. Comparison across lenders is critical.
Loan term restrictions: some lenders will not approve a loan that extends past the borrower's 75th or 80th birthday, regardless of the exit strategy. Others are more flexible. This is a lender-by-lender policy, not a universal rule.
High-density postcode policies: if the property is an apartment in a high-density suburb like Zetland, Waterloo or Mascot, some lenders apply tighter lending limits or require a larger deposit. Older buyers considering these suburbs need a broker who can identify which lenders do not apply those extra restrictions.
Lenders mortgage insurance (LMI): if the loan is more than 80% of the property's value, most lenders require LMI. For older borrowers, some LMI providers have their own age-related restrictions. Borrowing with a deposit of at least 20% removes LMI from the equation entirely.
How do you apply for a home loan in South Sydney when you are over 60?
The process is the same as for any borrower, with a few extra steps around income documentation and the exit strategy. Working with a broker simplifies each of these steps considerably.
Step 1: Talk to us
A free conversation with the My Finance Agent team takes about 30 minutes and covers your income sources, assets, exit strategy, and what you are hoping to buy. From that conversation we know which lenders will look at your application favourably before a formal application is lodged.
Step 2: Gather your income and asset documents
Depending on your situation, this includes recent tax returns, super fund statements, pension letters, investment account statements, and any current loan statements. Retired borrowers generally need more documentation than employees, so having these ready early saves time.
Step 3: Confirm your exit strategy
We help you frame your exit strategy clearly, whether that is a super balance, a property sale, an investment portfolio, or a combination. This framing is often the difference between an approval and a decline.
Step 4: Lender selection and pre-approval
We compare your options across 60+ lenders, focusing on those with the most practical policies for older borrowers. We then prepare and lodge the application with the lender most likely to approve it on the best available terms.
Step 5: Property purchase and settlement
Once you have a pre-approval and find a property, we manage the formal approval and work alongside your solicitor or conveyancer through to settlement. Our home loans service covers the full process from first conversation to keys in hand.
How does a mortgage broker in South Sydney help buyers over 60?
Our mortgage brokers in South Sydney work with older buyers in a way that a bank branch simply cannot. A bank can only offer its own products and its own policies. A broker compares 60+ lenders, including the specialist and second-tier lenders who are often the most accommodating of retirement incomes and shorter loan terms.
Specific ways a broker helps buyers over 60:
Lender matching: we know which of the 60+ lenders on our panel count account-based pension income in full, which accept shorter terms without extra scrutiny, and which do not apply the high-density postcode restrictions that affect many South Sydney apartments.
Exit strategy framing: we help you present your super balance, investment portfolio, or property sale plan in the format each lender expects, improving the quality of the application before it is submitted.
Protecting your credit file: every declined application leaves a mark on your credit file. By identifying the right lender before lodging, we significantly reduce the chance of an unnecessary decline.
No cost for standard home loans: our service is free for standard residential home loans. The lender pays us a commission on settlement. We disclose this in writing before any application is lodged.
Ready to find out which lenders suit your South Sydney plans? We compare loans from 60+ lenders from our Alexandria office. Free service, no cost for standard home loans. Get in touch or call (02) 8313-8400
Frequently Asked Questions
Can buyers over 60 get a 30-year home loan in South Sydney?
Some lenders will approve a 30-year term for a borrower over 60 if the exit strategy is sufficiently strong, for example a large super balance or significant investment assets. Others cap the loan term so it matures by the borrower's 75th or 80th birthday. The policy varies by lender, not by law. A broker can tell you exactly which lenders will and which will not, before you apply.
Does superannuation count as income when applying for a home loan?
It depends on which phase your super is in and which lender you are applying to. An account-based pension (drawdown phase) is counted in full by some lenders and only in part by others. A super balance that has not yet been converted to a pension is sometimes counted as a projected income stream by a small number of lenders. This variation makes lender selection the most important step for retired borrowers.
Is it harder to get a loan for an apartment in South Sydney when you are over 60?
It can be, for two separate reasons. First, some lenders apply tighter lending limits in high-density postcodes like parts of Zetland, Waterloo and Mascot, requiring a larger deposit regardless of the borrower's age. Second, older borrowers already face closer scrutiny on loan terms and exit strategies. When both factors apply at once, having a broker identify the right lender before applying is particularly valuable. Several lenders on our panel do not apply the high-density restrictions and are also accommodating of retirement incomes.
A mortgage broker or a bank: which is better for buyers over 60?
A mortgage broker, every time. A bank can only offer its own products and its own credit policies, which may not suit a retiree's income type or exit strategy. A mortgage broker compares 60+ lenders across the full market, including specialist lenders who are specifically set up to assess superannuation income, shorter terms, and equity-based exit strategies. For buyers over 60, the variation between lenders is wide enough that the difference between the right lender and the wrong one is often the difference between an approval and a decline.
Do buyers over 60 qualify for any NSW government schemes?
The NSW First Home Buyer Assistance Scheme (stamp duty exemption) applies only to first home buyers, so most buyers over 60 purchasing a subsequent property will not qualify. If you happen to be a first home buyer over 60, the scheme's standard eligibility rules apply and a broker can confirm whether your purchase qualifies. The Australian Government 5% Deposit Scheme similarly targets first home buyers (with a separate single-parent stream), so previous homeowners are generally not eligible. Equity release and reverse mortgage products are outside these schemes entirely.
What if I am still working part-time after 60?
Part-time employment income is counted in full by most lenders for the period you are working. The key question is what happens when that income stops: a lender needs to be satisfied that the loan can be serviced from your remaining income sources (super pension, investment income, Centrelink) or repaid from an exit event. A clear plan for that transition makes the application significantly stronger. Many buyers over 60 who are still working part-time have more borrowing options than they expect.
Your Next Steps
Getting a home loan over 60 in South Sydney is genuinely more complex than a standard application, but the complexity is manageable when you are working with brokers who know which lenders suit which situations. The variation in lender policy around retirement income, loan terms and high-density apartment postcodes is wide enough that the lender you choose matters as much as the application itself.
The My Finance Agent team is based in Alexandria and works with buyers over 60 across South Sydney every week. If you would like to understand your options, book a free chat with our team or call (02) 8313-8400. There is no obligation and no cost for standard home loans.
Written by the My Finance Agent team, award-winning finance and mortgage brokers with offices in Alexandria (South Sydney) and Bathurst, NSW (FBAA Finance Broker of the Year, NSW & ACT, 2023 and 2024).
