14 Apr 2026 Home Loans for Retirees in South East Melbourne, The 2026 Guide
Retirees across South East Melbourne have access to home loan options that many don’t realise exist. Whether you’re receiving the Age Pension, drawing from superannuation, or living on investment income, lenders who understand retirement income can still approve your application, and finding the right one makes all the difference to your outcome.
Your age alone doesn’t disqualify you from borrowing. While mainstream banks often take a conservative approach to retirement lending, specialist lenders assess what income you actually receive rather than focusing primarily on your employment status. Whether you’re looking to downsize in Sandringham – Cheltenham or St Kilda, the key is approaching lenders who treat pension and superannuation income as legitimate, ongoing revenue.
EverLend helps retirees across South East Melbourne compare home loan options from 60+ lenders, including those who specialise in retirement income assessment, completely free of charge.
Here’s what you need to know about securing finance in retirement before you approach any lender.
Key takeaways
- Age Pension, superannuation and investment income all count toward serviceability.
- Specialist lenders assess retirement income differently from mainstream banks.
- Over-55s can contribute up to $300,000 per person from a property sale into super.
What income do lenders accept from retirees?
Lenders who work with retirees typically accept Age Pension payments, superannuation income, investment returns, and rental income as legitimate ongoing revenue. Your exact income mix determines which lenders suit your situation best, and how they calculate your borrowing capacity varies significantly between institutions.
Can retirees get home loans in South East Melbourne?
Yes, retirees qualify for home loans every day across South East Melbourne. The key requirement is demonstrating ongoing income that covers loan repayments, whether that’s pension payments, super drawdowns, or investment income. Lender choice is critical because assessment approaches vary substantially: some focus heavily on your age, while others prioritise your actual income and equity position.
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What government support is available for retirees buying property?
Options that may apply to retirees include:
- ›Self-Managed Super Fund property purchases: buy investment property directly through your SMSF, using super funds rather than personal borrowing.
- ›Downsizer super contributions: over-55s can contribute up to $300,000 per person ($600,000 per couple) from property sale proceeds into superannuation, within 90 days of settlement.
- ›Pension asset test exemptions: your principal place of residence doesn’t count toward Age Pension asset test calculations, regardless of value.
- ›Stamp duty concessions: some states offer pensioner stamp duty discounts. Check current VIC concessions through the State Revenue Office.
How do mortgage brokers help retirees get home loan approval in South East Melbourne?
Step 1: Talk to us
Get in touch and we’ll assess your income sources, equity position, and borrowing goals to identify which lenders treat retirement income most favourably for your situation.
Step 2: Document your income streams
We help you gather the right evidence, including pension statements, super drawdown records, investment income documentation, and any part-time work income if applicable.
Step 3: Calculate your serviceability
Different lenders apply different assessment rates to pension and super income. We model your application across multiple lenders to find the strongest borrowing capacity.
Step 4: Position your application strategically
We present your income as ongoing and reliable, emphasise your equity position, and approach lenders who have experience with retirement borrowers first.
Step 5: Handle the approval process
Retirement income applications often require additional documentation or explanation. We manage the lender relationship and address any questions that arise during assessment.
Step 6: Coordinate settlement
We work with your solicitor and the lender to ensure settlement happens smoothly, and arrange ongoing rate reviews to keep your loan competitive.
What mistakes do retirees make when applying for home loans?
The biggest mistake retirees make is assuming their age automatically disqualifies them from borrowing. While some mainstream banks have conservative age policies, specialist lenders assess applications primarily on income and equity rather than employment status. Walking into your current bank without comparing options often means missing better-suited lenders.
Many retirees also underestimate their borrowing capacity by not presenting their full income picture. If you receive Age Pension, super income, investment returns, and occasional part-time work, each income stream strengthens your application when documented properly. Lenders who understand retirement income can assess your total position more favourably than institutions that focus on employment income alone.
What age limits and lending policies apply to South East Melbourne retirees?
Most mainstream lenders have age-based lending policies, but these vary significantly between institutions. Some will lend to borrowers up to age 75 at application, others to 80, and a few specialist lenders assess applications based on income rather than age limits. The key is finding lenders whose policies align with your timeline and situation.
Loan structures worth considering include:
- ›Interest-only options: reduce monthly repayments by paying interest only, particularly suitable for retirees with equity who want lower ongoing costs.
- ›Pension income assessment: lenders who specialise in retirement lending treat Age Pension and super income as stable, ongoing revenue rather than temporary payments.
- ›Equity-based lending: some lenders focus more heavily on your property equity and deposit size than your employment status or age.
- ›Family guarantees: adult children can guarantee part of your loan using their own property equity, reducing deposit requirements or helping with serviceability.
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Like to know which banks & lenders work best for retirees? Know where you really stand and what’s possible, so you can plan with total confidence. 5.0 on GoogleLocal expertsFree service
Prefer to talk now? Call 03 7036 3356 |
Frequently Asked Questions
Can retirees get home loans in their 70s?
Yes, age alone doesn’t disqualify you from borrowing. Specialist lenders assess applications from borrowers in their 70s based on income, equity, and loan structure rather than employment status.
Does Age Pension count as income for home loans?
Yes, lenders who work with retirees treat Age Pension as legitimate ongoing income. Your exact pension amount and any supplements are included in serviceability calculations.
Can I use super income to qualify for a mortgage as a retiree?
Absolutely. Superannuation drawdowns, account-based pensions, and transition-to-retirement income all count toward your borrowing capacity when documented properly. Lenders assess the sustainability of your super balance alongside your income needs.
What deposit do retirees typically need for a home loan?
Most retirees borrow with a 20-30% deposit, though some lenders accept 10% depending on your income strength and loan structure. A larger deposit often compensates for age-related lending policies and reduces monthly repayments.
How do lenders assess investment income for retirees?
Lenders typically use 80% of rental income and dividend income in serviceability calculations. Share portfolio income may be averaged over two years to account for market fluctuations, while rental income requires lease agreements and property management statements.
Should retirees use a mortgage broker or go to their bank directly?
A mortgage broker, every time. Retirement income assessment varies dramatically between lenders: some are conservative about age, others focus purely on income and equity. We know which lenders suit retirement borrowers and can position your application for the strongest outcome.
Can retirees get an interest-only loan?
Yes, interest-only loans can be ideal for retirees who want lower monthly repayments and have equity in the property. Many retirees use interest-only structures for downsizing or investment purchases, particularly when they plan to sell the property within a few years.
Your Next Steps
Getting your home loan right in retirement is about more than finding any approval. The right lender for your income mix can mean better serviceability assessment, lower repayments through interest-only options, and approval timelines that work with your property purchase plans, outcomes that vary significantly between institutions across South East Melbourne.
The right lender for retirement borrowing depends on your income mix, and that’s a conversation worth having. Talk to the EverLend team or call 03 7036 3356, and we’ll compare your options across 60+ lenders at no cost to you.
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External Resources
EverLend · St Kilda and South East Melbourne · General information only – this article does not constitute financial advice. Please consider your own circumstances and seek professional advice before making any financial decisions. · Last updated 16 July 2026