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Why a 40-Year Mortgage Term Is Worth Considering for Your Clients
Lower repayments, better cash flow, and more flexibility — here's how the 40-year term can open doors for your clients and your practice.
30-year est. repayment/mo
$2,684
40-year est. repayment/mo
$2,368
Saved per month
~$316
The property market continues to challenge borrowers — from first home buyers stretching to get in, to investors looking to structure smarter. One option that often gets overlooked? The 40-year mortgage term.
At HVJ Finance Solution, we believe in giving clients every tool available to them. Here's why the 40-year term deserves a place in your lending toolkit.
“Smaller repayments don't just make life easier — they can be the difference between a client qualifying for finance or missing out entirely.”
Stretching a loan from 30 to 40 years on a $500,000 loan at 6.5% p.a. reduces estimated monthly repayments from $2,684 to $2,368 — a saving of around $316 per month. That's not small change.
Four reasons to consider the 40-year term
Lower repayments improve serviceability
Smaller monthly payments help more clients pass lender serviceability tests — opening doors that might otherwise stay closed.
More breathing room on cash flow
Clients keep more money in their pocket each month to manage living costs, save, or invest alongside their loan.
Get into the market sooner
A longer term reduces the entry barrier — helping clients buy sooner or structure their purchase with greater confidence.
Flexibility for investment scenarios
When working through investment or portfolio strategies, a 40-year term gives you more room to structure deals creatively.
Of course, a longer term means more interest paid over the life of the loan — and that's an important conversation to have with every client. But for the right borrower, the short-term flexibility can outweigh the long-term cost, especially when they're in a position to make extra repayments down the track.
The 40-year term isn't the right solution for everyone — but it belongs in the conversation.
Ready to explore the 40-year term for your clients?
Talk to the HVJ Finance Solution team today.
* Repayment figures are illustrative only, based on a $500,000 loan at 6.5% p.a. principal and interest. Individual circumstances vary. This is general information only and does not constitute financial advice.
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