Buying a property at different life stages: What to consider

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

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

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

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.
Compare home loans - last updated 9 December 2023
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Featured Product
Mozo experts choice awards won:
- Low Cost Home Loan - 2023
Unloan Variable
Owner Occupier, Refinance Only, LVR <80%
interest rate
comparison rate
Initial monthly repayment5.74% p.a. variable5.65% p.a.For refinancers only. 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 in as little as 10 minutes.
CompareCompareUnloan Variable
For refinancers only. 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 in as little as 10 minutes.
- interest rate
- 5.74% p.a. variable
- comparison rate
- 5.65% p.a.
- interest rate
- 5.74% p.a. variable
- comparison rate
- 5.65% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $10,000
- maximum borrowing amount
- $10,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Unloan Unloan Variable
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Home Variable Rate
Owner Occupier, Principal & Interest, Refinance Only
interest rate
comparison rate
Initial monthly repayment6.15% p.a. variable6.15% p.a.Enjoy a competitive variable interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply) Mozo Experts Choice award winner.
CompareCompareHome Variable Rate
Enjoy a competitive variable interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply) Mozo Experts Choice award winner.
- interest rate
- 6.15% p.a. variable
- comparison rate
- 6.15% p.a.
- interest rate
- 6.15% p.a. variable
- comparison rate
- 6.15% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - up to $30,000
- Redraw facility
- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 90.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $10,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Up Home Variable Rate
-
Mozo experts choice awards won:
- Packaged Home Loan - 2023
Variable Rate Home Loan Special Offer
Package, Owner Occupier, Principal & Interest, LVR<80%
interest rate
comparison rate
Initial monthly repayment6.14% p.a. variable6.51% p.a.Package benefits across Home Loans, Visa Credit Card, Personal Loans and Term Deposits. No package fee for the first year. No application, settlement or redraw fees to pay. Quick and easy application. Free CoreLogic RP Data property reports. *Terms, conditions and lending criteria apply.
CompareCompareVariable Rate Home Loan Special Offer
Package benefits across Home Loans, Visa Credit Card, Personal Loans and Term Deposits. No package fee for the first year. No application, settlement or redraw fees to pay. Quick and easy application. Free CoreLogic RP Data property reports. *Terms, conditions and lending criteria apply.
- interest rate
- 6.14% p.a. variable
- comparison rate
- 6.51% p.a.
- interest rate
- 6.14% p.a. variable
- comparison rate
- 6.51% p.a.
- Upfront fees
- $0
- Ongoing fees
- $395.00 yearly
- Discharge Fee
- $350.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- -
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- $0 package fee for the first year.
Read our Mozo Review to learn more about the Credit Union SA Variable Rate Home Loan Special Offer
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Mortgage Simplifier
LVR<80%, Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment6.14% p.a. variable6.43% p.a.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. Winner of Australia’s Best Essential Bank in the Mozo Experts Choice Awards.
CompareCompareMortgage Simplifier
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. Winner of Australia’s Best Essential Bank in the Mozo Experts Choice Awards.
- interest rate
- 6.14% p.a. variable
- comparison rate
- 6.43% p.a.
- interest rate
- 6.14% p.a. variable
- comparison rate
- 6.43% p.a.
- Upfront fees
- $299
- Ongoing fees
- $0.00
- Discharge Fee
- $250.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the ING Mortgage Simplifier
-
Featured Product
Mozo experts choice awards won:
- Low Cost Home Loan - 2023
Unloan Variable
Investment, Refinance Only
interest rate
comparison rate
Initial monthly repayment6.04% p.a. variable5.95% p.a.For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.
CompareCompareUnloan Variable
For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.
- interest rate
- 6.04% p.a. variable
- comparison rate
- 5.95% p.a.
- interest rate
- 6.04% p.a. variable
- comparison rate
- 5.95% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $10,000
- maximum borrowing amount
- $10,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Unloan Unloan Variable
* 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
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