Borrowing After 50
Borrowing after 50 remains possible but lenders apply stricter rules. The key change is the need for a documented exit strategy beyond employment income. Serviceability buffers and income assumptions become more conservative as retirement approaches. Preparation and clear evidence improve approval outcomes.
The Two‑Person Retirement
Retirement is rarely experienced as one shared financial journey. Couples often retire at different times and face different health paths. Spending patterns shift as needs and priorities diverge over time. Planning for two separate experiences creates a more resilient outcome.
Granny Flat Arrangements
Granny flat arrangements often mix family intentions with complex legal and Centrelink rules. Transferring assets for a lifetime right to live somewhere can trigger gifting issues. The structure used can affect pensions, tax outcomes, and future aged care eligibility. A clear written agreement is essential to protect all parties.
Q & A
- What does an exit strategy mean when borrowing after 50?
It shows how the loan will be repaid once employment income reduces in retirement.
- Is there still a tax issue with granny flat agreements?
No, but the CGT concession only applies if strict conditions are met and the agreement is formal.
- How does the Age Pension change when one partner enters care?
Both partners can receive the higher single rate under illness‑separated rules.
