Millenials aren't the only ones who can have trouble getting a home loan..

According to data by ING Direct, the number of over 65 year olds still holding a mortgage increased by 28 per cent in the past three years. 

Of those who still have a mortgage in their retirement years, 74 per cent are owner-occupiers, while 26 per cent hold an investor loan.

The research found that the average debt these older Australians are taking into their retirement is $158,000.

Mark Bouris, executive chairman of Yellow Brick Road said in the Sydney Morning Herald this week that while young first-home buyers have been big news lately, there are also issues at the other end of the age spectrum: how does a person in their 50s or 60s get a home loan?

Mark goes on to say:

People are often trying to borrow money later in life: a divorce, death of a partner, downsizing/upsizing, purchasing an investment property etc. There's many reasons for older Australians to seek a mortgage.

The proportion of Australians aged 65 and over increased from 11.8 to 14.7 per cent of the population between 1994 and 2014, according to the Australian Bureau of Statistics. The increase is even higher for those aged 50 – 64.  So people once called "seniors" or "elderly" are a growing group with financial needs including mortgages.

The good news for older Australians is that it's against the law to discriminate on the basis of age. Yes, you reveal your date of birth to lenders, but this is to help identify you and defeat fraud – it doesn't decide loan eligibility.

What is allowed to be calculated by lenders is your capacity to repay the home loan, also known as loan-servicing.

For people aged from their 50s and upwards, loan-servicing involves three main determinants, and lenders give these factors a different weighting depending on circumstances.

Firstly, are you still in work and is there a likelihood of you continuing to earn income?

The older you get, lenders are obliged to ensure your income and employment will continue for the duration of the proposed loan term, ensuring you can meet the repayments both in the short and long term without undue hardship. This is also the law: just as lenders can't make a decision based on your age, they can't advance credit without verifying the means of you repaying the loan.

Secondly, what is the loan term?

If you want to borrow $300,000 and you're 60 years old, the lender may write the loan for only 10 years, not the standard 30, longer loan terms can be established for this scenario, however, a lender will be looking for what is termed an "exit strategy" for when the borrower stops working, that is how the loan can be repaid or serviced when wages stop.

Thirdly, do you have other assets?

Lenders are more flexible with mortgages for older Australians who own assets of value. If you have other property, a business, shares or a large super balance, the lender can be satisfied that there are assets to cover the mortgage should you stop working and earning.

There are some points to consider if you are older and want a mortgage. Borrowing to buy an investment property is a better proposition for most lenders (provided you have substantial equity in an owner-occupied residence), because the property itself can be liquidated to repay a mortgage and therefore factored-in to the eligibility criteria. Owner-occupiers, who are coming to end of their working lives, will find the borrowing criteria tighter.

Another important aspect of mortgages for older Australians is determining the likely length of your working life. If you're a white-collar worker, lenders might accept that you want to work until you're 70-80 years of age. If you're a 60-year old brickie's labourer, the lender may have doubts that you'll work for another 20 years.

Older Australians seeking home loans should not be put-off by their age. In the end, lenders will assess your application on its merits.