Our clients were in their sixties, owned their property, and had a clear plan: release equity to fund a new agricultural business. The plan was sound. The hurdle was that some lenders look at a borrower’s age before they look at anything else. Here’s how we got it done.
The goal: $600,000 of equity, put to work
After decades of building up equity in their property, the clients wanted to put part of it to work in a farming venture of their own. Rather than selling, they wanted a cash-out: borrow against the property they already owned and use the funds to set up the business.
The amount they needed was $600,000. They came to us with the idea, and we came back quickly with a plan: how much to release, which lender to approach, and how to present the application.
The hurdle: age, and the question behind it
Borrowers over 60 are often told, directly or indirectly, that they are “too old” for a new loan. In practice, lender policy on age varies a lot: some lenders apply age-based limits or extra hurdles, while others don’t treat age as a barrier on its own.
That was exactly the situation here. Some lenders on the panel would not proceed because of the borrowers’ age. Going to one of them first would have cost time and could have left an unnecessary enquiry on the clients’ credit file.
The solution: going straight to the right lender
Knowing lender policy is the part of a broker’s job you don’t see. Instead of sending the application around and waiting for declines, we went straight to a lender on our panel that doesn’t restrict lending on the basis of age, and prepared the file for that lender’s assessment.
Once the documents were complete, the loan was approved within two days. The full $600,000 cash-out settled, and the funds went into the new agricultural business, which is now up and running.
What this means if you’re over 60 and planning a move
- A decline from one lender is not the market’s answer. Lender policy on older borrowers varies widely.
- Get your documents together first. Once the file was complete here, approval took two days.
- Releasing equity for a business carries risk. Talk to your accountant about the business plan and tax before you borrow.
If you are over 60 and weighing up a cash-out, whether for a business, an investment or helping family, send us a message or call 1300 968 888.
This is a real AUFSS client outcome. Client details have been anonymised. Every application is assessed by the lender independently, and approval depends on individual circumstances.
General information only, not credit advice. It doesn’t take your personal circumstances into account.
Jack (Muyuan) Si is a Credit Representative (516785) of Buyers Choice Licencing Pty Ltd ACN 626 172 281 (Australian Credit Licence No. 509484).
Photo: “Rolling Farmland” by atlanticstorm (Christopher_Griner), licensed under CC BY 2.0 (source).