Buying a house with your own name on it is on a bucket list of many people. They take home loans in late 20’s or 30’s. But for some personal, professional or even financial reasons, many miss the earlier timeline and start the home buying procedure in their 40’s. If you are looking for a home loan and you are in your 40’s you may face some eligibility issues. Though you may be having a very stable and higher income at your career but you’re also reaching closer to your retirement age. At this point you’ll be obligated to various other financial obligations like taking care of aged parents, financing your child’s higher education and saving for your retirement.
Retirement age in India is at average 60. The tenure of home loan ranges from 15-30 years. So the banks and NBFCs take into consideration all your financial obligations.
Taking a home loan in your 40’s may seem difficult but it can be achieved easily if you consider following aspects…
Maximizing the tenure
The loan tenure for a regular home loan is of maximum 30 years. But if you take a home loan in your 40’s, banks and NBFCs offer you a smaller tenure considering your retirement at 60. Once retired, you run out of source of earning regular hefty income. Thus your ability to pay back the home loan post retirement is considered dicey. Thus banks and NBFCs offer 15 to 20 years of tenure for home loan applicants who are in their 40’s. But if you have a good credit score, steady employment and proof of regular pension, you may be able to convince your home loan lender to grant you a longer tenure of 25-30 years.
Opt for a joint home loan
Taking a joint home loan maximizes your eligibility. Better eligibility enables you to borrow maximum loan amount, with minimum interest rate and longer tenure. Your co-applicant in a joint home loan will also receive tax deduction along with you. A family member can be a co-applicant for joint home loan.
Opt for larger down-payment
If you make a larger down payment for your home loan, the amount of EMIs reduces drastically. Large down payments provide you with low EMI and reduced interest rate component in loan repayment.
But in order to pay large down payment, do not use your emergency funds or retirement funds.
Lump sum repayments
When you take a home loan in your 40’s, you should be aware that you will be facing a lot of financial obligations. You should try to pay back the loan before your retirement as your life post-retirement will be free of financial worries. The best way to do so is lump sum repayment of your home loan. Use your bonuses, gratuity etc. to pay back the loan before time.
Choose the correct lender
Choosing the correct loan lender to a house in your 40’s is very important. When you apply for a home loan on Ruloan, you can choose from a list of banks and NBFCs, compare their interest rates and other fees before applying for a home loan.
So become a proud home owner today by applying for a quick home loan here!
