It may be the case that you don’t have enough money to buy the retirement village unit of your dreams. Can you fund the difference with a bank loan?
Short answer: No.
The way retirement villages work is that you pay for a “right to occupy” a unit in the retirement village, in the form of a lease or licence. You don’t get the freehold title to your unit and this is the security that a bank typically uses to secure their loan. Retirement village residence contracts explicitly state that the lease or licence cannot be used as collateral for a loan.
Freehold (strata) retirement villages
Freehold villages are different, in that you actually buy the freehold title to your unit within a body corporate or strata scheme. You then lease the unit to the village operator, who sub-leases it back to you. Confusing, right?
You may get lucky and find a lender that would be happy to lend against the freehold title, but it would be troublesome for the bank in the event that they have to step in as a mortgagee in possession and try to sell the unit.
The last word
So in summary, no, you cannot fund a retirement village unit with a mortgage.
Suggested next read: What does it cost to move into a retirement village?