Why Is Bank Math Ageist?

Why buying young gives you more options

Many first-home buyers don’t realise that age plays a big role in how banks assess lending. When you're in your 20s or 30s, banks see you as a lower-risk borrower because you have more working years ahead to pay off the loan. They’re happy to lend to you on a standard 30-year term, which keeps your mortgage repayments lower and more manageable.

But here’s what happens as you get older:

• Once you hit your 40s, banks start adjusting their calculations. They assume you’ll retire at 65, which means instead of a 30-year mortgage, they may only offer you a 20- or 25-year loan.
• A shorter loan term = higher repayments each month, making borrowing more difficult.
• If you wait until your late 40s or 50s, you might need a much larger deposit or a solid plan for repaying the loan before retirement.

The steeper the hill, the harder the climb

A lot of Kiwis think, I’ll buy later, but later often means harder. The sooner you get into the market, the more flexibility you have—whether that’s with loan options, repayment terms, or even just giving yourself time to build equity and upgrade to your tomorrow home later.

If you’re in your 20s or 30s and thinking about buying, don’t wait until the climb gets harder—start now and give yourself the best possible options.

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• Up to $10K headstart towards your deposit 
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