Senior Australians could be in home loan debt until 105

Monday 16 June 2014

Article by Mozo

Financial experts have warned Australian seniors to avoid getting into debt, as banks offer home loans that could leave them paying it off until 105, according to news.com.au.

Senior Australians could be in home loan debt until 105

Financial Counselling Australia’s executive director, Fiona Guthrie told the website, the number of older Australians getting into ‘financial difficulty’ was increasing and the result could be ‘disastrous.’

“We urge a lot of caution around taking out a mortgage when you are older.”

“We see the aftermath of when it goes wrong and it’s awful because it tears the family apart.” Guthrie said it might be something they want to discuss with their adult children before they do it.

Guthrie also warned older generations that acting as guarantors for younger generations who had failed to build up a big enough deposit can go wrong.

Mozo advises older Australians to search the home loan market to find a better deal and open a high interest savings account to build up their nest egg.

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