Granite Enters 40-Year Mortgage Market with Extended Loan Terms

Non-bank lender Granite Home Loans has entered the growing market for 40-year mortgages in Australia, offering borrowers an extended loan term as a way to improve affordability and flexibility.

The company's 40-Year Extended Home Loan will be available from October 6, with owner-occupiers and investors eligible for the longer mortgage terms.

Granite will not pass on the full Reserve Bank of Australia cash rate increase in full, and has introduced a 0.05% to 0.15% premium on standard investment and owner-occupied rates respectively.

The lender's chief executive, Andrew Chepul, expects younger borrowers, first-time buyers, and growing families to be attracted to the longer loan terms, which allow for interest-only periods of up to ten years.