Home Loans for Downsizers in East Brisbane, QLD, Your Options Explained

You've spent years building equity in your family home, and now the question isn't whether you can afford to move - it's how to make the next purchase work without tying up everything you've built. Whether you're stepping from a four-bedroom house in Hawthorne into a riverside apartment in Kangaroo Point, or selling in Carindale to settle near family in Coorparoo, the lending picture looks different from your first purchase.

Lenders don't have an upper age limit as such, but they do assess how a loan is repaid once you've left paid employment. That means your superannuation, your investment income and your future plans all come into the picture alongside your property equity. Knowing how that assessment works puts you in a much stronger position before you start talking to lenders.

Our team helps downsizers and retirees across East Brisbane, QLD compare their options across 60+ lenders. The downsizing home loan side of it is where most of the difference between lenders is made.

Can downsizers still get a home loan in East Brisbane?

Yes - downsizers can get a standard home loan at almost any age, and many do. What lenders assess is not your age but how the loan is repaid: your income in retirement, your assets, the loan term relative to your expected retirement date, and how much equity you're bringing to the next purchase. A large deposit from the sale of a family home often puts downsizers in a stronger position than a first home buyer with a small deposit and a 30-year horizon.

Source: APRA.

How do lenders assess a downsizer's income and repayment capacity?

This is where downsizer lending genuinely differs from every other buyer type. A lender adding the standard 3.0% APRA serviceability buffer to an assessment rate of approximately 9% needs to see that you can service the loan at that rate, from income that may not look like a payslip.

What lenders count toward income for downsizers:

• › Superannuation pension: accepted by some lenders for retirees already drawing, typically shown via current fund statements.
• › Investment income: rental income is typically assessed at 80% of gross, with holding costs added separately.
• › Part-time or consulting income: treated like casual employment - lenders want a consistent history, usually 12 months in the same field.
• › Age Pension: accepted by some lenders as a secondary income source alongside others.
• › Asset drawdown: a small number of specialist lenders will consider a documented plan to draw down on a super balance or investment portfolio over the loan term.

The loan term is assessed against your expected retirement date, not your chronological age. A 67-year-old with a clear documented income plan may access a longer term than a 55-year-old who can't show how repayments are funded. This is where lender choice makes the biggest difference.

What eligibility criteria apply to downsizer home loans?

What lenders typically verify for a downsizer application:

• › Income evidence: fund statements, tax returns covering investment income, or a letter from a financial adviser documenting a drawdown strategy.
• › Exit strategy: most lenders want to see how the loan is repaid at the end of the term - sale of the new property, further equity release, or a transition to the pension.
• › Property type: smaller units in high-density buildings can attract a narrower lender panel; the minimum internal living area at most mainstream lenders is around 50 sqm.
• › Deposit: most downsizers carry significant equity from the sale proceeds; a 20% deposit or more removes the LMI question entirely.
• › Credit history: assessed on the same basis as any borrower - defaults and judgments stay on the file for five years from the listing date.

What does it cost to downsize, and how much equity do you need?

CoreLogic data shows that unit medians across East Brisbane range from $785,000 in Woolloongabba to $1,220,000 in Bulimba, with the most active apartment markets by volume in Kangaroo Point (292 unit sales over 12 months to June 2026), West End (276 sales) and Coorparoo (230 sales). The majority of downsizer purchases sit in this unit tier.

A 20% deposit on an $850,000 unit requires $170,000 in equity, which most long-term owners in the area hold comfortably. The equity above the 20% LVR threshold is accessible for the purchase, but a bridging finance arrangement or a same-day settlement is often needed where the sale and purchase don't align perfectly.

The options worth weighing:

• › Sell first, then buy: no bridging finance needed · clear budget before you commit · risk of a settlement gap · most straightforward approval
• › Buy first with bridging finance: secure the new property before selling · peak debt on both properties during the bridge · assessed on end debt after sale · typically 6–12 month terms
• › Simultaneous settlement: one agent coordinates both contracts · removes the gap · harder to negotiate · requires an aligned buyer and seller timeline

Source: CoreLogic (via YIP, mid-2026).

Get in touch Need help with downsizing? We're a local team who understand how lenders actually assess your situation, not just your rate. We'll compare your options across 60+ lenders to find the right fit. Chat to Our Team Call 0422 868 524

What government schemes can downsizers use?

Most government first-home schemes are not relevant for downsizers, but two financial mechanisms sit directly in this buyer group's territory.

The downsizer super contribution lets each eligible person contribute up to $300,000 - or $600,000 per couple - from the proceeds of selling their home into superannuation. You must be aged 55 or over, have owned the property for at least 10 years, and make the contribution within 90 days of settlement. This is administered by the ATO and sits outside the usual annual super contribution caps, so it's a meaningful way to boost the fund balance before or during retirement.

The Home Equity Access Scheme (HEAS), administered by Services Australia, is a government reverse-mortgage-style arrangement available to those of Age Pension age who own Australian real estate. The rate is 3.95% per annum, compounding fortnightly - materially lower than commercial reverse mortgage products. The maximum drawdown is 150% of the maximum Age Pension rate per fortnight, plus lump sums of up to 50% of the annual maximum rate, twice per year.

HEAS interacts with the Age Pension, aged care costs and your estate, so a licensed financial adviser is essential before using it - the broker conversation and the adviser conversation need to happen together, not separately.

Source: Services Australia and Australian Taxation Office.

How does a mortgage broker improve outcomes for downsizers?

The lender choice decides the outcome here far more than the rate. Three policy differences move the number for downsizers, and they're rarely published side by side.

• › Retirement income acceptance: some lenders count super pension drawdown in full; others apply a shade or require a minimum balance alongside it - this single policy difference changes the loan amount significantly.
• › Loan term flexibility: some lenders limit the term once you've passed a certain age; others assess the exit strategy and extend accordingly - the difference can be five to ten years on the loan term.
• › High-density apartment policy: several mainstream lenders cap LVR or restrict lending in certain postcodes with high unit supply - where your target property sits in one of those postcodes, knowing which lenders have no such restriction is the whole answer.

Comparing across the panel finds the lender whose policy genuinely suits your income structure - whether that's the right handling of a super drawdown plan or no apartment postcode restrictions for a Kangaroo Point or West End purchase.

When does taking out a new loan not make sense for downsizers?

Not every downsize needs a new loan. If your equity from the sale covers the purchase price in full, taking on a loan adds cost and complexity that isn't necessary. A clean cash purchase also removes the lender's say over the property, which matters if you're buying a smaller unit where some lenders have size or postcode restrictions.

The case for a loan is strongest where preserving liquidity matters more than eliminating debt. Buying cash and leaving nothing in reserve is a worse position than carrying a modest loan and keeping a healthy buffer in accessible investments - particularly where aged care costs are a genuine future consideration. If your financial adviser is building a plan around maintaining liquidity, that conversation will point toward the right structure before any loan is applied for.

What approval challenges do downsizers face in East Brisbane?

Where applications run into trouble:

• › Income documentation: retirement income doesn't come in payslips - assembling super fund statements, investment schedules and a drawdown plan takes more time than a standard application, and gaps in the file stall approvals.
• › Settlement timing: bridging a gap between sale and purchase is manageable, but a lender's valuation on the outgoing property that comes in below expectation can compress the deposit and trigger a restructure at the worst possible moment.
• › Unit size and density rules: a unit under 50 sqm or a postcode flagged for high-density supply narrows the lender panel significantly - the right lender choice solves this before the application goes in, not after a decline sits on the credit file.
• › Existing credit card limits: lenders assess the full limit, not the balance - a $20,000 limit on a card that's rarely used is still counted as a monthly commitment at roughly 3% of the limit, which reduces the serviceable loan amount. Closing unused cards before applying is often the fastest win available.

Frequently Asked Questions

Can I get a home loan in retirement in East Brisbane?

Yes, lenders assess retirement income rather than employment income. Super pension drawdown, investment income and the Age Pension can all be used, depending on which lender you approach.

Is the downsizer super contribution available if I'm still working?

Yes, you don't need to be retired. You need to be 55 or over, have owned the property for at least 10 years, and make the contribution within 90 days of settlement.

Is it better for downsizers to sell first or buy first?

Selling first gives you a clear budget and avoids bridging finance, which suits most downsizers. Buying first makes sense where the right property is available now and you have strong equity to bridge the gap.

What happens to my loan assessment if I'm drawing on super?

Lenders vary significantly. Some count super drawdown in full as income; others shade it or require a minimum balance alongside it. Lender choice here changes the borrowable amount, not just the rate.

Do downsizers pay stamp duty in Queensland?

There's no specific stamp duty exemption for downsizers in Queensland. Standard transfer duty rates apply - the Queensland Revenue Office transfer duty estimator gives the exact figure for your purchase price.

Should downsizers use a mortgage broker or go direct to a lender?

A mortgage broker, every time. Downsizer applications involve retirement income structures, exit strategy documentation and unit-density policy that differ sharply between lenders - comparing across a panel is where the outcome is decided.

Your Next Steps

Getting your downsizing home loan right isn't just about finding a competitive rate - it's about finding the lender whose income assessment policy actually suits how your retirement income is structured, and whose apartment policy doesn't narrow your options before you've even started.

If downsizing is on your horizon, the next step is simple. Get in touch with the AE Finance Solutions team or call 0422 868 524. We'll work through where you stand across our 60+ lender panel.

Related article: Reverse Mortgages in East Brisbane.

About the author Abel Desta Director & Mortgage Broker, AE Finance Solutions Abel Desta is the Director and Mortgage Broker at AE Finance Solutions, an East Brisbane brokerage. Specialising in home finance, he helps first home buyers, upgraders and investors across the East Brisbane region. Abel is a credit representative (467836) of LMG Broker Services Pty Ltd (ACN 632 405 504), Australian Credit Licence 517192, and compares loans across a panel of 60+ lenders at no cost to the borrower. Meet Abel → LinkedIn

AE Finance Solutions, QLD, Australia. This is general information only - this article does not constitute financial advice. Please consider your own circumstances and seek professional advice before making any financial decisions.