Quick answer
A pensioner home loan is a mortgage for someone whose income includes the Age Pension, a part pension or another government payment, often alongside super, rent or part-time work. Some lenders will consider pension income and a sensible exit plan. Ownright Custom Finance looks for those lenders Australia-wide and also explores private options when mainstream ones step back.
Key points
- Age Pension and part-pension income can count with some lenders
- Lenders usually ask how the loan will be repaid or ended
- Super, rent, part-time work and downsizing plans can all be part of the story
- Refinancing, buying, renovating and releasing equity can all be explored
- Suits
- Age Pension and part-pension households, self-funded retirees with some pension
- Security
- Usually the home or another property you own
- Key question
- How the loan is repaid, or what the exit plan is
- Australia-wide
- Yes
Can pensioners get a home loan in Australia?
Yes, it can be possible, although the road is narrower than it is for a 35-year-old on a full-time salary. A pensioner home loan is not a special government product. It is an ordinary mortgage assessed with an eye on how your income is made up: the Age Pension or a part pension, superannuation income streams, rent, dividends, part-time work or a mix.
Lenders worry about two things. Can you service the repayments on the income you have, and how does the loan end? Answer both well and doors open that a standard bank website would have you believe are closed.
What counts as income for a pensioner loan?
Different lenders treat different income in different ways. Common sources include:
- Age Pension or part pension, paid by Services Australia
- Income streams drawn from superannuation
- Rental income from an investment property
- Interest and dividends from savings and shares
- Part-time or casual work
The Age Pension age is currently 67. Lenders will often ask for recent Centrelink income statements, super statements and bank statements to confirm what lands in your account and how regularly. Our page on Centrelink and pension income loans goes further into how payments are treated.
Why do lenders ask about an exit strategy?
When the term of a loan stretches well beyond a typical working life, lenders want to see how it will be repaid. Common exit plans are:
- Selling or downsizing the property
- Using part of super, where rules allow
- Selling another asset
- A family arrangement
- Refinancing to a smaller loan as circumstances change
A clear, believable plan, set out in plain English, often matters as much as the income figure. This is where an experienced broker can help: we write the story the way a credit assessor reads it.
Which loans might suit a pensioner household?
| Goal | Possible path |
|---|---|
| Lower or simplify existing repayments | Home loan refinance |
| Fund repairs, a granny flat or accessibility upgrades | Renovation loans or a top-up |
| Release equity without monthly repayments | Reverse mortgage or government scheme, explained in our reverse mortgage loans page |
| Help a family member buy | Guarantor or equity arrangements |
| Pay a debt or buy time | A short-term private or second mortgage |
What is the government Home Equity Access Scheme?
Services Australia runs the Home Equity Access Scheme, a voluntary loan for people who have reached Age Pension age. You borrow against equity in Australian real estate, take the money as fortnightly payments, a lump sum or a mix, and interest compounds on the outstanding balance until the loan is repaid, along with legal costs. It is not a Centrelink payment and it is not tax free forever in the sense that debts disappear; the balance has to be repaid. Whether it suits you is a personal decision, and independent financial advice is sensible before committing.
How does Ownright help pensioners?
Trevor Scott has more than four decades in finance, and that experience matters when a file does not fit a template. We start by listening: your income, your assets, your health and family plans and what you want the money to do. Then we go looking for lenders who read pension households fairly, including non-bank lenders and private lenders that are comfortable with property security and a credible exit.
We also work with people who are not sure a loan is the right answer yet. If the better move is to wait, restructure or use a different tool, we say so. If you have been told no elsewhere, ask us before giving up. Our difficult home loans page explains how we approach files that do not fit.
An illustration
Illustrative scenario only. A retired couple on a part pension owns their home with a small remaining mortgage. Their bank will not extend the loan to cover a roof replacement and a bathroom update. A broker could look at a lender that counts part-pension income and super drawdowns, and structure a modest top-up with a clearly written plan to downsize in the years ahead.
What mistakes should I avoid?
- Borrowing for a long term without a plan for how it ends
- Assuming a lender’s online “no” applies to every lender
- Using the home as security for someone else’s debt without advice
- Forgetting that pension entitlements can change when assets or income change
- Signing equity-release documents without independent advice
What documents should I have ready?
- Photo ID and recent Services Australia income statements
- Super and income stream statements
- Three to six months of bank statements
- Rates notice, insurance and current loan statements
- A list of assets and debts, using our assets and liabilities guide
Our loan ready checklist covers the rest.
Can I keep my home if I need to borrow in retirement?
For most borrowers the home is the whole point of the exercise, so it is worth thinking about the loan in terms of what you want to keep. Many retirees want to stay in their house for as long as possible, leave something to family and avoid regular repayments that squeeze the pension. Different loan types lean in different directions. A standard loan keeps the balance under control through repayments, while an equity release product eases monthly pressure but grows the balance over time. Sometimes a smaller, shorter loan solves the actual problem and leaves more options open. We talk through what you want to protect before we talk about lenders.
What about owning a home while on a part pension?
Part-pension households sit in an interesting middle ground. Income and assets tests decide how much pension is paid, so a change in assets or income can shift the payment. Lenders see the pension as one piece of the income picture and look at the rest alongside it. We recommend you speak with Services Australia or an independent financial adviser about pension effects, and we will structure the loan around that advice.
Ready to talk through your options?
Sounds like you’re looking for a home loan that works on a pension income. We’re the lending experts in pensioner and retiree finance, so click the button below and see if you qualify with people who will take the time to listen.
How it works, step by step
- 1
Step 1
Tell us your income sources, your age and what you want the loan to do.
- 2
Step 2
We work out which lenders will count pension, super, rent or other income, and how they view the exit.
- 3
Step 3
We prepare the application and a short summary so the lender understands your plan.
- 4
Step 4
We keep the file moving until funds are released, and explain each document along the way.
Frequently asked questions
Can I get a home loan on the Age Pension?
Sometimes. Age Pension is a regular government payment and many lenders count it as income, though how much they count and for how long varies. The loan term, your age and your exit plan matter too. We ask the right questions first, then approach lenders that are comfortable with your profile.
What is an exit strategy and why do lenders ask?
An exit strategy is how the loan will be repaid when the term ends, such as selling or downsizing, using super, or an agreed repayment from other assets. Lenders ask because a loan running well past retirement needs a credible end point. Having a clear plan often lifts your options.
Can I refinance my home loan as a pensioner?
Often yes, particularly when the existing loan is small relative to the home's value and repayments are affordable. Pension, part-time income and super can feed into the assessment. If your bank will not move, other lenders may. Tell us what you owe and why you want to switch.
Is a reverse mortgage or the government's Home Equity Access Scheme better than a pensioner loan?
They are different tools. A reverse mortgage or the government scheme typically does not require regular repayments but interest builds up on the balance, which can reduce what is left for your estate. A standard loan needs regular repayments. We explain how each works so you can compare them with a clear head.
Does taking a loan affect my pension?
It can, depending on how the money is used and what you hold afterwards. Pension rules look at income and assets, and the treatment of borrowed money and of the family home differs from other assets. Check with Services Australia or a financial adviser, and we will work with the advice you receive.
Can a family member help me qualify?
Sometimes. A family member might act as guarantor, co-borrower or offer their security, which can widen your options. That brings real obligations for them as well, so it deserves careful discussion. We can explain how each arrangement works before anyone commits.