How Old Is Too Old to Get a Home Loan?

Can I split joint debts with my spouse to improve my borrowing capacity?

Does HECS affect how much I can borrow?

Do pet expenses count? What about bad credit, bonuses or self-employed income?

These are some of the most common lending questions we receive at CCS Lending.

✅ Does HECS affect borrowing capacity?

Yes. HECS-HELP repayments can reduce your borrowing capacity because lenders generally include the compulsory repayment applicable to your income when assessing serviceability.

The impact is usually based on your repayment obligation relative to your income—not simply the outstanding HECS balance. This means even a relatively small remaining balance may continue to affect servicing until it is repaid or cleared.

✅ Can joint debts be apportioned between spouses?

Potentially.

Some lenders may allow an existing joint debt to be apportioned where the spouse who is not applying for the new loan can demonstrate that they have sufficient income to service their share of the liability.

This is assessed on a case-by-case and lender-by-lender basis. General household expenses—including childcare, education and other family costs—will usually still need to be considered as part of the household’s overall living expenses.

✅ Can bonuses, overtime and allowances be included?

Yes, depending on the lender and the consistency of the income.

Bonus, overtime, commission and other non-base income may be accepted at a reduced percentage, often where the applicant can demonstrate a consistent history over one or two years.

Certain regular allowances—such as shift, car, uniform, working-away-from-home or FIFO allowances—may be accepted at up to 100% by some lenders where they are ongoing, essential to the role and supported by appropriate evidence.

✅ What happens if I live with my parents rent-free?

Even where no rent is currently being paid, many lenders will include a notional rental expense when calculating borrowing capacity.

The amount applied varies between lenders and is intended to account for the possibility that the borrower may need to pay rent or housing costs in the future.

✅ Can I obtain a home loan with bad credit?

Possibly.

Credit impairments—including defaults, missed repayments, arrears, judgments or previous financial hardship—may be considered depending on their severity, age, amount and explanation.

The available loan-to-value ratio, interest rate and lender options will depend on the overall application. A larger deposit or stronger equity position may also be required.

✅ Does age affect a home loan application?

Age alone does not automatically prevent someone from obtaining finance.

However, lenders must consider whether the proposed loan term is reasonable and how the debt will be repaid, particularly where the loan extends beyond the applicant’s expected retirement age.

A suitable exit strategy may include superannuation, investments, downsizing, other assets or a shorter loan term. The strategy must be realistic and should not place the borrower in financial hardship.

✅ Can self-employed applicants use only one year of financials?

In some circumstances, yes.

While many lenders traditionally request two years of financial statements and tax returns, selected lenders may accept one year of financial information where the business is established and the applicant’s income is considered stable and reliable.

Alternative income-verification options may also be available for eligible self-employed borrowers.

✅ Do pet expenses affect borrowing capacity?

Yes. Pet-related costs form part of your household living expenses and may therefore affect how much you can borrow.

Dependants—including children and a financially dependent spouse—can also reduce borrowing capacity because lenders must account for the ongoing cost of supporting the household.

Every lender assesses income, liabilities and living expenses differently. The right lender and loan structure can make a significant difference to your borrowing capacity.

For a personalised borrowing-capacity assessment, speak with the team at CCS Lending.

General Advice Warning

The information provided in this article is general in nature and does not take into account your personal objectives, financial situation or needs.

Before acting on any information, you should consider whether it is appropriate for your circumstances and seek personalised advice where required.

Lending policies, eligibility requirements, interest rates and borrowing-capacity assessments vary between lenders and may change without notice. Credit approval is subject to lender assessment, applicable lending criteria and terms and conditions.