Notes On Mature Aged Borrowers

1923 Words Oct 7th, 2016 8 Pages
Mature aged borrowers
For mature aged borrowers where the loan term would extend beyond a reasonable working life, Zagga Market will also request evidence of an acceptable exit strategy as part of assessing their requirements and objectives, to confirm the debt can be repaid either on or after retirement without hardship. Zagga Market considers the retirement age to be 65 unless advised by the borrower that retirement is to occur prior. For any borrower who is older than 55 today (at application stage), Zagga Market will require an acceptable exit strategy. The credit assessment personnel will review any exist strategy for borrowers who are 55 years or older.
Exit strategies may include (but not limited to):
(a) income from other investments;
(b) downsizing of the borrower’s home;
(c) sale of assets, e.g. shares, investment property, assets held in super, managed funds, term deposits, cash or other investments; and/or
(d) post retirement recurring income to meet loan repayment obligations. Income must be recurring and may include (but not limited to) the following income types:
(i) rental income; and
(ii) income from superannuation funds.
For mature aged borrowers, any sale to repay the debt should fit the borrower 's documented requirements and objectives. Care is required where the loan is secured by an owner occupied property and the borrowers’ only/main asset is their home.
Zagga Market does not consider selling the borrower’s home as a suitable exit strategy, except…
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