Wednesday, 10 December 2014

Points to be Remember While Taking a Home Loan after 45

If your age is 45 years or more in age and are thinking of taking a home loan, chances are that you will need to go for shorter loan tenure up to 15 years as compared to younger home loan borrowers.  Say, you apply for a home loan at the age of 45 and your retirement age is 58 years, then the maximum tenure which the bank may be willing to give you will be 13 years. As the tenure is relatively shorter, your Home Loan Eligibility Calculator will be lower for the same EMI or you will have to shell out higher EMI compared to a 30 year old person availing same amount of home loan.

In recent past, increase in the salary levels has brought down the average starting age of most home loan borrowers. People now avail home loans in their late 20’s and early 30’s making it possible for banks to offer longer loan tenures up to even 30 years.
Now, if you happen to be taking a home loan in your 40’s, here are some important points that you need to know:

1. Do in-depth research: In today’s complex world, researching all the available Home Loan Calculator is very important, no matter what your age may be. However, when you make a new long term financial commitment at the age of 45, it becomes more important for you. This is because you also have many other expenses to take care of, such as children’s education, their marriage and your own retirement.
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2. Increase your down payment or own contribution: At the age of 45, you may have more savings than a 30 year old.  So, it may not be a bad idea for you to use your savings to make higher down payment, thereby opting for a lower loan amount. This will reduce your EMI and your interest outgo.

3. Choose the maximum possible loan tenure available: The loan tenure available to you will be maximum 15 years. So, try and avail that.  In case you have surplus money available, you can always prepay your home loan.

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