Are lenders discriminating against older people?

Since the GFC, Banks have remained cautious when lending to older borrowers but mortgage brokers say prevailing lender attitudes could be amounting to age discrimination.

House + Home Loans managing director Rael Bricker said he can understand the banks are trying to protect themselves, but feels some ‘age policies’ have gone too far.

“It should be viewed much more on a case by case basis,” he said. “I think lending managers are all so nervous about being on Channel 7 chucking someone out of their house when they’re 65 that they’re being more cautious than they need to be.”

Allan Faint, director of Home Finance Centres of Australia, said that since the end of the GFC, lenders have largely refused to make exceptions for financially sound older borrowers.

“It’s not right that somebody in their 50s can’t get a loan. The only thing that’s changed is the terminology. There’s nothing specific in the legislation that says somebody in their 50s can’t get one but the terminology has changed so that it can be twisted that way,” Faint said.

Faint added that it’s time lenders addressed the discrimination. “Something needs to be done about it. Nobody is willing to say it’s because of age discrimination and it drives me nuts.”

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Comments
  • Keith Vic says on 21/01/2014 06:37:05 PM

    Well I am 60anda1/2years and I have just had a home loan approved by a major bank without any penalty or prejudice. The loan $256K over 10 years which I will payout by the time I reach 66.5years (6years) and then retire.

  • Morris says on 21/01/2014 09:04:01 PM

    yes I believe the big four are, my parents recently sought to go into a JV with me and found at 60 they weren't willing to do so... but yet were willing to let them take out an extensive line of credit... go figure, needless to say if there is a will there is way, but discrimination is rife!

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