While the Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating against credit applications based on factors such as age, qualifying for a mortgage may be more difficult later in life. In fact, the likelihood of a mortgage refinance application being rejected rises steadily with age, according to research from the Federal Reserve Bank of Philadelphia.
Still, baby boomers — born between 1946 and 1964 — accounted for 42% of recent buyers, more than any other generation, according to the National Association of Realtors’ 2026 Home Buyers and Sellers Generational Trends report.
If you’re looking to buy a home, refinance or borrow against equity as an older adult, it’s important to assess your credit and finances early in the process to avoid rejection and make the most out of your home loan, regardless of your age.
Taking on debt in retirement deserves careful consideration, since your income may be lower and less flexible than it was during your working years. A mortgage payment that was manageable with a steady paycheck can strain a fixed income, especially if you need to pull from retirement savings to handle it.
Withdrawals from a tax-deferred account like a traditional IRA or 401(k) are taxed as income, so covering a mortgage payment with them can cost more than the payment itself.
Be sure to consider your spouse or partner when deciding to get a mortgage or borrow against your home. If one of you were to die during the loan term, would the survivor be able to repay the loan? Take into account life insurance and other financial support the surviving spouse can count on.
However, you may be in a position to take on a mortgage or other home-related debt if:
Keep in mind that, while your monthly payment may be fixed, the costs of insurance, property taxes and utilities, as well as routine maintenance, are likely to increase, which will take an extra bite out of your retirement savings.
Despite laws prohibiting age discrimination in lending, older people can face more challenges in getting approved and receiving a competitive price. Research from the Federal Reserve Bank of Philadelphia found the rejection rate for mortgage applications rises steadily as people age, and it climbs faster among the oldest applicants, even when accounting for credit and income characteristics.
Getting approved doesn’t always result in a good deal, either. In 2025, 81% of refinancers age 55 and older paid more than they needed to for their loan, according to a Bankrate analysis of federal mortgage data.
Some factors can work against older borrowers:
You can take steps to improve your chances of being approved for a competitive rate. Paying down debt, documenting all sources of retirement income and comparing loan estimates from at least three lenders can all increase your odds. If a lender denies you without providing a clear financial reason, ask for its explanation in writing.
You’re entitled to this under federal law, and you can file a complaint with the Consumer Financial Protection Bureau (CFPB) if you suspect age discrimination.
Yes. Social Security payments count as qualifying income, so it’s possible to get a mortgage even if they’re your only income — as long as you meet the lender’s credit, debt and down payment requirements. Like any borrower with a low income, you might not qualify for a large mortgage, and you may need to put down a sizable down payment or apply with a co-borrower.
Older adults and retirees have…
