24 Jan 2022

Does Anyone Offer a 40-Year Mortgage?

40-Year Mortgage

While buyers suffer from 40-year mortgages, this does not mean that banks do! Most banks allow these mortgages because they can make money off of them. However, they only accept a small number of applicants as 40 years is a long time. There are a lot of factors to consider when looking at a 40-year mortgage.

Who Should Apply for a 40-year Mortgage?

Since 40 years is a long time, especially for interest to build, only a small number of people should apply for this type of mortgage loan. The target demographic that banks and lender companies look for are young couples with education or stable jobs.

Anything can happen in such a long time! Possible scenarios like losing a job or moving to a new location. It is harder for people to move if they have a 40-year mortgage. 

What Companies Offer 40-year Mortgages?

Not many Australian-based companies offer these long mortgages. The most popular choice amongst home buyers is Pepper Home Loans. This company offers loans that last 40 years on homes. However, the interest costs and rates are high! They do not allow a lot of people to have this option, though.

According to their website, Pepper Home Loans requires a home to cost a minimum of 50,000 AUD to be eligible for this loan. It is a popular choice among young couples who cannot pay a large down payment or the settlement costs. As rent rises, more people will look at longer mortgages.

Other lenders only consider 40-year mortgage loans with specific cases as the timeframe is long. An average homebuyer is 30, meaning they will complete their mortgage at 70 if they have a 40-year mortgage.


All in all, there are many things to consider when looking to apply for a 40-year mortgage loan in Australia. There are countless mortgage calculators online that can break down the exact costs and interest increases based on your interest rate, originally borrowed amount, and years.

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