40-Year Extended Home Loan
Unlocking borrowing capacity and repayment flexibility for clients
- Owner Occupiers
- Investors
- Construction
- High LVR
- Serviceability
- Cash-flow
The 40-Year Extended Home Loan is a new, multi-purpose home loan that extends the borrowing power and home loan repayment flexibility of investor and owner occupier clients, whether they are buying, refinancing or building.
An innovative 40-year loan product for Australian borrowers
In 2026, Australian borrowers face significant affordability, serviceability and cash-flow challenges when seeking to purchase, build or refinance property. The 40-Year Extended Home Loan meets these challenges with an innovative solution, purpose-built for brokers and their clients.
40-year loan terms for a wider range of borrowers
For investors and owner occupiers whether purchasing, refinancing or constructing.
Extended home buying, investing or building power.
Up to 95% LVR lends, inclusive of risk fees, with the potential for serviceability to be assessed over 35 years.
Built-in repayment and
cash-flow flexibility
cash-flow flexibility
Longer loan term can reduce repayments, with interest only repayment terms available.
Eligible to owner occupiers and investors.
Not limited to just first home buyers or investors.
Up to 10-year IO construction purpose available.
Not just for established property buys or refis.
Servicing can be assessed over 35 years.
Not limited to 30-year loan servicing assessment.
40-year terms for owner occupiers up to age 45
Loan term reduces after 45, with a max age at loan maturity of 85.
(No age restrictions for investors.)
Up to 95% LVR lend inclusive of our risk fees.
If Company or Trust, then up 80% LVR.
PAYG, self-employed and Company & Trusts.
Wider range of borrower and income types (subject to lending criteria).
Product snapshot: 40-Year Extended Home Loan
Purpose
Purchase, Refinance, Construction
Maximum Loan Term
Up to 40 years
Maximum Interest-Only Term
Owner Occupied: Up to 5 years / Investment: Up to 10 years
Loan Amount
$150,000 – $3,500,000
Maximum Borrower Exposure
$10 million
Maximum LVR
- Up to 95%, inclusive of Lenders Protection Fee (non-construction) or Construction Risk Fee (construction)
- Company and Trust borrowers: Maximum LVR capped at 80%
Interest Rate Type
Variable
Borrower Types
PAYG, Self-Employed, Companies & Trusts
Security
Residential
Extra repayments
Permitted to make unlimited extra repayments without restriction. Making additional repayments can help reduce the loan balance sooner, shorten the effective loan term and lower the total amount of interest paid over the life of the loan.
With features that put borrowers in control
Offset Facility: 100% Offset
Visa Debit card: Available
Extra repayments: Unlimited
Redraw: Available
Who can benefit from the 40-Year Extended Home Loan?
Owner occupiers
- First home buyers buying or building a property as a first or long-term home.
- Existing homeowners refinancing for lower repayments or lifestyle priorities.
- Upgraders moving to a larger home.
- Self-employed borrowers with variable income wanting to manage repayments.
Investors
- Investors who want to buy a new property with a smaller deposit.
- Investors looking for more cash-flow flexibility on a new or existing loan.
- Investors interested in benefitting from newbuild property opportunities.
Key questions and answers
Age requirements
Owner occupied
Eligible borrowers can access the full 40-year loan term if they are aged 45 or younger at the time of application. For borrowers aged 46 to 50, the maximum available loan term reduces incrementally. The maximum application age is 50, with eligible borrowers aged 50 able to access a loan term of up to 35 years, ensuring the loan reaches maturity by age 85.
In summary:
- The oldest borrower must be 50 years old or less at the time of loan application
- The oldest borrower must be 85 years old or less at loan maturity
- The loan term will be adjusted to ensure the age of the oldest borrower is 85 years old at the time of loan maturity (the minimum loan term available is 35 years).
How to calculate your client’s maximum loan term
Adjusted loan term calculation for a 48-year-old borrower.
- Maximum age at maturity: 85
- Available loan term: Maximum age at maturity less current age = 85 years – 48 years = 37-year loan term.
Investment
No age restrictions apply to investment home loans.
Exit strategy
Where one or more borrowers attached to the loan are over 55, then an acceptable exit strategy is required, regardless of whether the loan is owner occupied or investment.
Interest only options
Owner Occupied
Eligible owner occupier borrowers can choose an interest only term of between one and 5 years.
Investment
Eligible investment borrowers can choose an interest only term of between one and 10 years.
Serviceability
Serviceability is assessed over a maximum period of 35 years (not 30).
A minimum 5-year interest only (IO) period is applied when assessing serviceability, for both owner occupier and investor clients, even when no IO period is chosen. This results in a serviceability assessment over 35 years (or the remaining P&I term).
Investment
Where an investor chooses an IO period greater than 5 years (up to 10), the actual IO term is used, and repayments are assessed over the remaining P&I term.
- Example: A borrower with a 40-year home loan term that chooses a 7-year IO term will have serviceability assessed over a 33-year period (40-7=33 years).
Construction loans
Construction loans include a minimum 12-month interest only (IO) period during the construction phase. Customers may choose a longer IO period as part of their loan application. If a longer IO term is selected, the loan will remain interest only for the balance of the approved IO period after construction is completed.
Where a customer initially selects the minimum 12-month IO period, they may request an additional IO period after construction is complete, subject to the maximum allowable IO term for the loan product and lender approval.
Important: 40-year home loan trade-offs
40-year home loan comes with important trade-offs.
Higher interest costs
When your clients borrow and repay their loan over a longer term, more interest will be paid over the life of the loan.
Slower equity growth
Your client’s equity in their property will grow slower, particularly in the early years, if their repayments are less.
Interest only repayments
During an interest only repayment term your client’s loan balance will not reduce, and their repayments will increase when the term ends.
More Loan Details
Loan Structure
- Up to 40-year loan term
- Principal & Interest repayments
- Interest only repayments up to:
- 10 years total for investment
- 5 years total for owner occupied
- Minimum 12-month interest only (IO) period during construction. Construction clients may select an IO period that exceeds the construction period, where the approved IO period will continue after construction and the loan is fully drawn, subject to the maximum allowable IO term.
Maximum LVR
- 95% (Inclusive of Lenders Protection Fee or Construction Risk Fee)
- Subject to Postcode Matrix.
Features
| Offset facility: | Available |
| Split loans: | Up to 4 splits |
| Redraw: | Available (Construction: Available once construction is completed) |
| Debt consolidation: | Available for up to 20% of the security value for LVR < 90% |
| Equity release: | Available for up to 20% of the security value for LVR < 90% |
| Extra repayments: | Unlimited |
| Visa Debit card: | Available to Australian residents. For eligible residential construction loans, a Visa Debit card is available after the construction period ends. During construction, a Visa Debit card is only available where an offset facility is linked to the loan. |
Borrower
Credit history:
- Clear credit history
- Subject to credit assessment and servicing requirements
- Income verification required as per standard lending policy
Employment type:
- PAYG
- Self-employed borrowers (minimum 24 months trading in the current business)
- Company borrowers (minimum 24 months trading in the current business)
- Trust borrowers ( has been registered for a minimum of 24 months)
Security
- Residential property
*Refer to Granite’s Broker Management Tool to get an early indication of whether a security property meets key Granite location and property policy requirements.
Risk fees
- Refer to Risk Fee Chart
Disclaimer
This web page is for accredited mortgage brokers only and is not intended for distribution to retail consumers. Product features, fees, eligibility criteria and lending policies may change without notice. All applications are subject to credit assessment, verification requirements, lending criteria and approval. Terms and conditions apply. The information provided is accurate as of the issue date and is subject to change without notice. Choosing a 40-year home loan involves important trade-offs and risks. Borrowers should obtain independent financial, legal and tax advice before proceeding to apply for a 40-year home loan. Refer to the Target Market Determination (TMD) before recommending this product.
