They say one is never too young or old to plan for the future. You can choose to pursue your interests at the age of 40, or you can learn financial jargon at the age of 16 as well. Every age has its perks and cons. For example, buying a home at an early age gives you more room to spread your expenses over a longer period. You wouldn’t have received this benefit if you started to plan for purchasing a home at the age of 40. When it comes to purchasing a home, several factors decide the best timing and age for buying a house that should be kept in mind before you apply for a home loan.
Questions to ask yourself
Right age: To figure out the million-dollar question, you need to do some introspection. After all, buying a home cannot be a haste decision. You need to ensure you are in a position where you can handle paying it back. Here are a few of the questions you should ask yourself are given below:
Are you in a financially stable position? Do you have an assured income for the next few years? Are you anywhere in a stage where you can afford to settle down in a place for the foreseeable future? Are you satisfied with your job, or you are thinking about switching that involves settling abroad? If you do not have a family and your job involves moving around a lot, then it doesn’t make sense for you to buy a house. However, if you have settled into a city and can envision yourself raising a family, you can go ahead with the purchase. Just remember, financial stability and consistent regular flow of income should be your primary concern so that paying off your home loan shouldn’t be a burden for you. Many lender websites, such as ICICI, have ICICI Home Loan EMI Calculator, which you can use to understand how much your monthly outgo would be had you chosen the ICICI for your home loan needs.
Note: It is not advisable to apply for a home loan when you are close to retirement, as you may not have the steady income required to repay the loan.
Your current financial condition: You can useAxis Bank Home Loan EMI Calculator or ICICI Home Loan EMI Calculator, or any other EMI calculator given on the lender’s website but remember lenders will analyze your current financial condition as a part of their home loan eligibility condition. To understand your current financial condition, it might be imperative to ask yourself these questions:
Are your financially responsible, or do you splurge a lot? Ask your relatives and friends to understand this question better. What is your credit score? If it is low, work on first improving it. Is your savings game strong? Even by availing of a home loan, do you have enough savings in your bank to fund other emergency needs?
Is there a right time to take a home loan? If yes, then when?
Well, this may currently be the best time to get a home loan. Thehome loan rates are at low points. To make up for the lost business from lockdown days, banks are pushing home loans aggressively and coming out with different schemes on both rates and fees. Coming out of covid-19, banks are trying to get ahold of those people with strong credit history and stable income profiles, and if you are one of those, then you can certainly fetch the best deal either in the form of concessions for women borrowers, processing fees waiver, from the lenders across India. First, check your EMI outgo using Axis Bank Home Loan EMI Calculator.
3 reasons why your 20s are the best time for taking a loan
Purchasing a property at a young age, especially when you are in your twenties, offers rewarding benefits in the long run, so much so that your older self will say thank you to you for making that decision. Buying a property at 20 certainly has a lot of benefits; with age by your side, you could avail a higher loan amount, flexibility on the repayment, and tenor of your home loan. Do use Axis Bank Home Loan EMI Calculator to find out how much it will cost you to avail of a home loan. Moreover, purchasing a home means buying an asset that you can use towards tax exemptions.
Can opt for a longer tenor on a lower EMI: Do you know lenders calculate the tenor of a home loan backwards? They start from your retirement age and calculate accordingly to the age you are applying for it. Naturally, if you are applying at the age of 40, you will have less time to repay your home loan than, say, if you are applying when you are 25. Lenders like ICICI and Axis Bank give you the option to calculate your total EMI outgo using ICICI Home Loan EMI Calculator, which will help you plan which tenor and EMI amount are best suitable for your needs.
Can access the high amount of funds: Owning to your age and earning capacity at a reputable organization makes you eligible to apply for a high amount of funds as a home loan. As you know, being young permits you to work for more number of years that in turn creates a bigger earning portfolio for you. You can use Axis Bank Home Loan EMI Calculator to check out your total outgo as per your age.
Allows you to improve your credit score: A longer tenure of repayment gives you the freedom to balance your EMIs alongside other financial obligations. With your age by your side, it creates a breathing space for your finances and helps you plan your savings and expenses in a better way by allowing you to keep long-term goals in mind. In the eyes of a lender, healthy financial history and a good repayment schedule will help you build a better credit score. A home loan isn’t like any other loan in respect of the tenure it comes with. It is a long-term commitment, and repaying it carefully will make you more disciplined towards saving and spending. You can take the help of tools such as ICICI Home Loan EMI Calculator and Axis Bank Home Loan EMI Calculator to calculate your total EMI outgo. With each EMI that you pay, you will get more confident about the asset that you are creating for your future. Buying a home in your 20s and availing a home loan for the same around this time is a wise financial move as it offers myriad benefits to the borrower, like tax savings and repayment flexibility.