Buying a property at different life stages: What to consider

Woman in 50s, sitting on porch with dog, in front of the home she just bought.

So you’ve made the decision to purchase your own little piece of earth. No matter what stage of life you are at, there are two things to figure out: 

a) what kind of property you want to buy

b) what you can actually afford

Figure out your borrowing power

One of the first big wads of cash you’ll hand over for a home loan is the deposit. Ideally, you will want to have at least 20% to put down. Any less than that and you will generally have to pay lenders mortgage insurance, unless you have a guarantor. 

This brings us to our next point, which is that what life stage you are at will most likely have some bearing on how much of a deposit you can muster up and what you can afford.

Buying in your 20s or 30s

Illustration of a couple buying a flat together in their 20s.

There are both pros and cons to buying a home in your 20s or 30s. Buying at a young age means you should be able to get a longer loan term (between 25 and 30 years). This will make your repayments smaller and more manageable. However, simply saving enough money for a deposit in the first place can be a tough hurdle to get over.

If you’re at the beginning of your career, then you probably won’t be earning the big bucks just yet. Having someone to share the financial burden with, whether that be a family member, your partner or a friend usually helps. This isn’t always possible, so if you are buying by yourself then you’ll want to keep a strict budget and have a clear idea of what you can afford.

You might even be able to take advantage of the government’s First Home Loan Deposit Scheme if you are a first time buyer. Read our First Home Loan Deposit Scheme guide to learn more about what criteria you need to meet, to be eligible for the scheme.

Buying a home with children

Illustration of a couple with children, buying a home.

If you have children, then the goal posts for buying your own property move once again. 

You may still be able to get a longer loan term, even into your mid-40s, but you will obviously have other expenses to consider. Plus, as Mozo’s Property Expert Steve Jovcevski says, lenders take into account a whole lot more when working out your home loan serviceability these days (that’s a calculation to work out your ability to pay back the loan).

“The new serviceability criteria takes into account stuff like tuition costs. So you’ll need to show your lender how much you’re spending on private school fees and that could have some effect on how much you can borrow,” says Jovcevski.

Of course that’s just one cost to consider. Simply having children comes with different expenses, whether that be the basics like food and clothing or more luxury expenses like paying for streaming services.

The best thing to do is to sit down and work out what all your expenses are. Then you can look at your savings and get a rough idea of what type of property you can afford to buy. As Jovcevski says, it may be a matter of thinking about what is more important to you right now. If you want to send your children to a pricey school then you may have to settle on a smaller home and mortgage and vice versa.

Buying in your 50s

Illustration of a man in his 50s, holding a piggy bank and standing in front of a house he's about to buy.

Once you get into your 50s, you will have fewer options available to you when it comes to home loans. This is because most lenders do not want mortgage repayments to carry on into retirement. In fact, the closer you are to retirement age, the less likely lenders are to approve you for a longer loan term.

“The thing with the loan term is, the shorter it is, the higher the repayments will be,” says Jovcevski. “If your lender won’t approve you for a longer loan term, then you will have to think about how high the loan repayments will be.”

Jovcevski added that when buying a home in your 50s or even late 40s, it is important to know what your savings are and how much superannuation you have. This is because your lender will take all this into account when deciding whether or not to approve you for a loan.

For instance, let’s say you want to borrow $500,000 to buy a house. Your lender will take your current superannuation balance into account and any other savings you might have. The expectation is that you will be able to have paid off the loan in about 15 years time.

Of course, whether you want to use your superannuation to buy a house is another question. If you have high loan repayments to offload throughout your 50s and early 60s then this may affect your quality of life. So, you may not be able to take as many holidays as you would like, you might not be able to afford a new car, that sort of thing.

Ultimately you really need to weigh up your options and decide what is more important to you.

Check your credit 

Lastly at any life stage, you will need to know what your credit history is. You can get a free credit check at least once a year to find out your credit score. Then, if it’s not so great, you can work on improving it. 

Head to Mozo’s home loans guides section for more information on taking out a mortgage. Or, if you’re ready to dive in and start looking for a loan, check out the home loans on offer below.

Home loan comparisons on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 473 home loans.
Last updated 19 June 2024 Important disclosures and comparison rate warning*
  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Discount Variable Home Loan

    • Owner Occupier
    • LVR<70%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.01 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    A low rate home loan for owner-occupiers packed with great features including unlimited extra repayments, free online redraw, no application or monthly admin fees. Rate will vary depending on LVR. Winner of a Mozo Experts Choice 2024 Low Cost Home Loan Award^

  • Variable Home Loan 90

    • Principal and Interest
    • LVR <90%
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.06 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.

  • Fixed Rate Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Fixed 3 years
    Comparison rate
    6.15 % p.a.
    Initial monthly repayment
    $3,027

    Additional repayments of up to $10K per fixed year. Interest rate discounts available. Waiver of $499 application fee when combined with an Orange Advantage Home Loan.

  • The Better Home Loan Special Offer

    • Owner Occupier
    • Principal & Interest
    • LVR<80%
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a variable rate home loan with a bunch of features from Police Credit Union. Make extra repayments at any time without penalty. No monthly, annual or upfront fees. Free online redraw. Minimum 20% deposit. Qualifying criteria applies. Minimum loan amount is 200K. For new customers only. Mozo Experts Choice Home Lender Credit Union of the Year 2023.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Mortgage Simplifier

    • LVR<80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.17 % p.a.
    Initial monthly repayment
    $3,043

    Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

  • Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.59 % p.a.
    Fixed 3 years
    Comparison rate
    7.06 % p.a.
    Initial monthly repayment
    $3,190

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

image of houses

Need help with refinancing?

You might have questions that need personal answers. We’ve teamed up with the mortgage brokers at Lendi to get you the answers you need, and a home loan deal you deserve.

Learn more

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

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