Moving from large family home to smaller property? Access your equity, reduce maintenance, stay close to amenities. Smart move for 55+.
Common reasons Australians aged 55+ choose to rightsize their living situation.
4-bedroom family home, kids moved out. Now it's just you (and partner), rattling around in empty rooms. Maintenance, heating/cooling, cleaning - it's all too much.
$1.2M house, $200K mortgage. You're sitting on $1M equity. Downsize to $800K apartment, pocket $400K+ for retirement, travel, or helping kids.
Big yard, gutters to clean, painting, repairs. Move to modern low-maintenance apartment or villa - someone else does the work. Enjoy your time instead.
Trade size for location. Move closer to cafes, shops, medical services, public transport. Walk to everything. More social, more convenient, better lifestyle.
Two-storey house with stairs becoming difficult. Move to single-level apartment, ground-floor villa, or unit. Better for mobility now and future-proofing.
Big house = big bills. Smaller property means lower rates, utilities, insurance, maintenance. Free up $5K-$15K/year for living expenses or retirement savings.
Different strategies depending on your age, income, and goals.
Sell large home, buy smaller property outright with no mortgage. Keep the difference.
Buy nicer/better-located property, keep small mortgage to preserve cash for lifestyle.
Not ready to sell yet? Buy new property first, rent out family home. Transition gradually.
How lenders assess downsizers at different ages.
Still working or recently retired. Lenders treat you like any other borrower.
Retired but plenty of lending options. Lenders assess super/pension income.
Fewer lenders, but still possible with right strategy and documentation.
While age affects lending options, the real focus is on income sustainability and ability to repay. A 70-year-old with strong super balance, investment income, and no debts is far more attractive to lenders than a 40-year-old with unstable employment and high debts. Work with a broker who knows retirement lending.
Special tax benefit for 55+ selling principal residence.
If you're 55+ and selling your home of 10+ years, you can contribute up to $300K per person ($600K per couple) from sale proceeds into superannuation. This contribution:
Couple aged 62, owned home for 15 years, selling for $1.2M:
Result: $450K extra in super, growing tax-free. At 4% return, that's $18K/year additional retirement income.
Important: You must make the contribution within 90 days of settlement. Speak to a financial advisor and accountant about whether this strategy suits your situation. Rules are complex.
Yes! Lenders accept super pension, age pension, investment income, and rental income. They assess whether your retirement income can comfortably service the loan repayments. For example, if you receive $60K/year from super pension + $25K age pension = $85K total income. A $200K loan at 6% = $14,400/year repayments. You have $70K+ left for living expenses - easily approved.
Specialist lenders like Heartland, Bluestone, and Liberty cater to 70+. They focus on serviceability and property security rather than age. Expect: (1) 10-15 year loan terms, (2) Rates 0.5-1% higher than standard, (3) 20-30% deposit required, (4) Proof of sustainable retirement income. Alternatively, if you have adult children, they could go on the loan with you (improving approval chances).
Depends on your priorities. Apartment pros: Low maintenance, great locations, amenities (pool, gym), security, lock-and-leave for travel. Cons: Strata fees ($3K-$10K+/year), no yard, noise. Villa/townhouse pros: Small private courtyard, often lower strata, more space. Cons: Some maintenance, fewer locations. Many prefer villa for privacy but apartment for location. Visit both types before deciding.
Stamp duty is a significant cost. In most states, there's no downsizer concession (you pay full stamp duty on purchase). However: NSW has small pensioner concession, some states offer stamp duty discounts for off-the-plan purchases. Factor $20K-$50K for stamp duty on $700K-$1M purchase. This is why many downsizers prefer to buy outright - they've already factored stamp duty into their numbers.
Absolutely common! Many Sydney/Melbourne sellers buy in Brisbane, Gold Coast, or regional areas where property is more affordable. Challenges: (1) Can't use bridging finance easily (need to sell first usually), (2) Need to coordinate move across states, (3) Should inspect new property in person. Strategy: Sell your property first, rent short-term while buying interstate, or buy subject to sale of your current home.
Typical timeline: (1) Decision to downsize: Take your time, visit properties, research areas, (2) List property for sale: 4-8 weeks marketing, (3) Sale to settlement: 6-8 weeks (sometimes 12 weeks), (4) Purchase new property: 4-6 weeks search, 4-8 weeks settlement. Total: 4-6 months from decision to moving in. Can be faster or slower. Don't rush - this is important decision. Visit potential new areas multiple times, different times of day.
We specialize in 55+ downsizer finance. We'll calculate your options, explain strategies, and find the right lender for your age and situation.
✓ Retirement income accepted • ✓ 70+ lending available • ✓ Downsizer super contribution advice