25 Jan 2022

What’s the Longest You Can Take a Mortgage Out For?

Longest You Can Take a Mortgage Out

There are no global or national restrictions regarding how many years you can take a mortgage out. However, while this is the case, each company and bank lender can decide on a maximum number of years. The average maximum is 30 years for a mortgage loan. However, a few Australian companies and banks allow 40-year loans.

What are the Benefits of Long Mortgages?

There are a lot of things to consider when taking out a long mortgage. However, some benefits come with them. When you take out long mortgages, the payments are split over long periods of time that end up decreasing the monthly payment significantly.

Not only are payments low, but you have time to pay them and focus on other things that matter to you. There are a lot of things that people need to save for, including education, children, and work opportunities. This is possible if you have extra income to spend when you have low monthly mortgage payments.

What are the Consequences of Long Mortgages?

With the benefits, you also have consequences and negatives. Long mortgages also mean that you spend a lot of money on interest. The interest accumulates each month, and if your interest rate is high enough, you can potentially find yourself owing more money than the original amount you borrowed. A person with a 30-year loan spends less than someone with a 40-year loan.

Who Should Apply for a 40-year Mortgage?

Is a 40-year mortgage worth it? It depends on who you ask. This is a great mortgage for young people who have the income to spend each month on their mortgage but also have time to continue spending and paying the payments.

Experts and economists don’t recommend older adults above 30 purchase or finance a home for over 30 years, especially as they reach retirement age.


Overall, you can take a mortgage out as long as 40 years; however, not all companies or banks provide this option. It is more common and acceptable to see mortgages last 30 years maximum. It may increase if you refinance, but not by ten years.

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