Purchasing or constructing a house is one of life’s noblest dreams. Almost every Indian citizen harbors the desire to own a home.
However, the cost of house purchase or construction can be well beyond the financial capacity of most individuals, a reason why they apply for home loans to streamline the process.
When you apply for a home loan, the lender evaluates multiple factors, including age, to determine the interest rate and decide whether to approve the loan or not. Since home loan repayment tenure is quite long, 30 years to be precise, and the maximum age of loan repayment is 60, lenders prefer younger borrowers.
So, if somebody applies for a home loan when they are in their thirties, they can get a full 30 years of loan repayment. The following sections contain five foolproof techniques to increase the odds of home loan approval after 45.
Foolproof Techniques to Increase the Odds of Home Loan Approval after 45
Include Your Spouse
If your spouse’s age is lower than yours, it is wise to include him/her in your loan application. When you include your spouse, your eligibility increases. Moreover, if your spouse is an earning member, the eligibility may increase further.
You may use a home loan eligibility calculator to calculate your eligibility before applying for a home loan.
Rope in a Second-Gen Borrower
A second-generation borrower is one whose age is between 18 and 30 with a stable income. When you apply for a home loan with a second-generation borrower, your lender will increase the eligibility.
Alternatively, you can also increase the home tenure by making the other borrower the primary borrower.
Make a Higher Downpayment
As per the rules laid by the Reserve Bank of India (RBI), home loan borrowers must pay at least 10% of the loan amount as the downpayment. The downpayment assures the lender about the borrower’s intent to repay.
There is no upper limit to the downpayment amount. So, you can use your savings to make a downpayment of 20% or even 30%. A higher downpayment will reduce your liability and assure the lender.
Hence, they will offer easy loan approval and the best rates.
Make Part Payments
The RBI has mandated that no Indian lender can levy a penalty or fee for foreclosing floating-rate home loans. Unlike fixed-rate loans, floating-rate loan rates change depending on RBI’s interest rate change.
So, if your loan is on a floating rate of interest, you can convince the lender that you can close the loan much before the loan term ends. This might prompt the lender to give you good interest rates while approving the loan.
Insure Your Loan
Most Indian lenders offer insurance facilities on home loans. You need to apply for it while availing of the home loan. An insurance policy takes care of the loan repayments if the borrower dies suddenly.
It also assures the lender that the loan will never become a non-performing asset or NPA. Hence, they will approve the loan quickly.
The Lender Matters
Choosing the right lender is important to get the maximum benefits from a home loan. All reputed lenders provide a free home loan eligibility calculator on their websites, and you can use it to check the real cost of availing of a home loan.
Compare multiple lenders and make a sensible decision based on your financial profile.
Applying for a home loan makes sense when you are sure that your application will be approved. However, applicants above 45 often face difficulty in getting the loan approved. The points mentioned in this article can help you secure loan approval and conveniently fulfill the most cherished dream of your life.