A: Geoff Bawden, chairman of the NZ Mortgage Brokes Association, replies: Banks Shouldn't and generally don't discriminate on age, but they are perfectly entitled to establish details of your ongoing repayment ability.
In your own interests, you would want them to do that.The cost of servicing such a large mortgage is significant and while it might be affordablewhile you are still working you need to be sure about how you will meet your commitments once you retire. At todays rates a long term principal and interest mortgage might cost you anything between $2250 and $2400 per month. Will those payments still be affordable after you stop work? Maybe it doesn't matter because you might have other means to pay back or significantly reduce your debt before you retire.There are reputable options, such as equity release, that might be available to take care of any residue. If you are buying an apartment you should include in your commitments any costs associated with the body corporate.
The key revolves around making informed decisions. I suggest oyu talk to an NZMBA Accredited Broker.
To locate a broker near you go to www.nzmba.co.nz