Thinking of applying for a home loan in your 40s? It is never too late to make a property investment. Even in your 40s, investing in a home will bring you more ROI than most other assets. A quick home loan can help you finance the house you always imagined living in. If you are struggling with house loan eligibility because of your age, there is no reason to worry. Lenders typically offer a home loan for ages up to 70 years.
Here are some tips to keep in mind when you apply for home loans in your 40s.
1. Apply for a joint loan
If you have a co-applicant for your home loan, it can yield you more tax benefits than a regular housing loan. You can opt for a joint loan with your working spouse or your child. A joint loan will not only improve your house loan eligibility but it can also help you in borrowing a bigger loan amount.
2. Improve your credit score
Your credit history is an important factor in determining your house loan eligibility. For someone in their 40s, financial steadiness is the only assured way to get a home loan. Make sure to pay off any existing debts before you apply for home loans. A good CIBIL score will stand for your repayment credibility which is often used by the house loan calculators. This will vastly improve your chances for loan approval.
3. Make a bigger down payment
You can use your savings to make a bigger down payment on your home loan. When you deposit a large amount upfront, you reduce your monthly instalments amount. Over the life of your housing loan, you will have a lower debt-to-income ratio with reduced interest costs. House loan calculators can provide you with an overview of the possible home loan plans.
Additional Read: Benefits of Home Loan that you are Probably Not Aware
4. Identify the right property size
With real estate prices soaring sky high, identifying the right home size for your needs should be the first step. Get an understanding of the right size of the property you wish to purchase for an accurate estimation of the home loan amount you should be borrowing. Since a home loan at 40 is a big commitment to make, this step will ensure that you are borrowing a loan which you can pay off within its tenure.
5. Know your housing loan
There are a variety of home loan options available in India. Your requirements could range from a room renovation to construction of a balcony. Identifying the right housing loan will help you secure benefits on tax returns and your monthly instalments as well. Carefully estimate your needs before applying.
Additional Read: How to Reduce Home Loan EMI – Tips and Tricks
These tips will ensure a seamless transaction of your home loan process. For more details about the right kind of loan you should be opting for in your 40s, visit Tata Capital today!