Who said you’re too old to buy a home? What if we tell you you can get a Home Loan even in your 50s? But you must remember that certain financial decisions tend to get a tad more complicated as you age.
What factors should you consider before applying for a Home Loan?
- How big does your new home need to be?
You may be in a financial position to buy your dream home at 50, but let’s be realistic. How big does your new home really need to be? Do you really need more than 2 or 3 rooms?
The smaller the size of your new home, the more chances the cost of your new home will be considerably less. This in turn means you can apply for a smaller Home Loan amount and make lower repayments towards it.
Use this Home Loan EMI calculator to help with the calculations.
Additional Reading: Pick The Best Home Loan Repayment Option
- Select a shorter tenure for the loan
Although banks decided a few years ago to extend Home Loan tenures from 10 years to 30 years until the borrower attains 70 years of age, if you are 50 years old when you apply for a Home Loan, do you see yourself making repayments over the next 20 years?
Also, note that this is only for specific customers. Most banks do not provide loan tenures that go beyond your retirement age, which would be 60 years.
Additional Reading: What Is The Right Tenure For A Home Loan?
- Retirement savings or Home Loan payments?
Don’t make this choice lightly. It may not be a good idea to stop your contributions to your retirement fund in order to pay off your Home Loan at such a late stage in your life.
However, by making smart investments, you may be able to do both.
Additional Reading: Buying A House? Should You Stop Investing?
- Location of the property
The location of the property makes a considerable difference to the price of the property. Think about where you’d like to live, but don’t ignore the aspect of convenience in your decision.
Additional Reading: 5 Best Locations In India To Invest In Land
- Do the children visit often?
Your children may have grown up and left the family nest to settle elsewhere. Think about how often they visit when you need to decide on a two bedroom or three bedroom house.
Additional Reading: Important Tips On Buying A Home
- Is it the right time to buy a house?
Look at your family situation. Have your children finished school and college? Do you plan to hang up your boots in another city?
Consider your priorities before opting for a Home Loan. Take the plunge only if you think the time is right.
Additional Reading: How To Plan Home Loan Prepayment
Deciding to buy a new house is not an easy decision. However, zeroing in on the right Home Loan isn’t that hard. Are you ready to make your move?