40-Year Extended Home Loan

Unlocking borrowing power and repayment flexibility for borrowers

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 and build property. The 40-Year Extended Home Loan meets these challenges with an innovative solution, purpose-built for brokers.

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

Longer loan term can reduce repayments, with interest only repayment terms available. )

Eligible to owner occupiers and investors

Not limited to just first homebuyers 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 incrementally after age 45 up to a max age of 50.
(No age restrictions for investors)

Up to 95% LVR inclusive of our risk fees

If Company or Trust, then up 80% LVR.

PAYG, self-employed and Company & Trusts

Supports wider range of borrowers and income types, if they meet lending policy 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

With features that put borrowers in control

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Offset Facility: 100% Offset

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Redraw: Available

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Extra repayments: Unlimited

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Visa Debit card: Available

Who can benefit from the 40-Year Extended Home Loan?

Owner occupiers

  • First homebuyers 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
Full 40-year home loan terms are available to eligible borrowers up to age 45, with the available loan term reducing incrementally up to a maximum product age of 50.

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)

Risk fees

Security

  • Residential property
  • *Refer to Origin MMS Mortgage Management Tool to get an early indication of whether a security property meets key Granite location and property policy requirements.

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.

Fees

Loan application/Loan settlement fee Nil
Lender's annual facility fee  $379.00
Lenders Protection Fee For loans above 80% LVR
Construction Risk Fee For all construction loans
Discharge administration fee $595.00 (is waived if loan reaches full term as per the loan agreement)
Loan account variation fee2 $150
Loan facility variation fee3 $450
Third party cost1 At cost
Valuation fee4 Waived for all residential applications 
  1. Third party fees are quoted exclusive of GST and will have GST added. Third party costs reasonably incurred in providing this service may include legal, custodian, mortgage management, land registry and electronic processing fees. These costs may vary and are payable by the applicant(s). Fees shown assume a standard application (one loan contract and one security property). Additional fees may apply for more complex arrangements (e.g. company or trustee borrowers, guarantors, variations or postponements).
  2. A Loan account variation fee may apply when changes are made to a loan account or its features (such as repayment frequency, loan structure, or linked accounts). Any applicable fees will be disclosed before the change is processed.
  3. A Loan facility variation fee may apply if a request change to a loan alters its structure, terms, or risk profile. This can include changes such as increasing the loan amount, extending loan term, adding or removing borrowers, or substituting the security property. These types of changes may require a reassessment of the loan. Any applicable fees will be disclosed before the variation is processed.
  4. The residential valuation waiver applies only to applications that have been approved and settled. If an application is cancelled, withdrawn, or no active application is received, any applicable cancellation and valuation fees will be payable by the borrower and, in some cases, the broker.

DISCLAIMER

This web page is for accredited Origin MMS Mortgage Managers. 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.

Standard refinances from a 30-year home loan are generally permitted, subject to lending criteria and credit assessment. Certain refinance types may not be eligible. Refinancing existing loans arranged initially or managed by ColCap Financial Group, Origin MMS or one of its managers or partners is prohibited for the 40-Year Extended Home Loan product.