Are you in your 60s and planning to buy a house? If yes, then home loans for senior citizens are your savior. With Indian lending institutions offering home loans at affordable prices, you do not have to spend your lifelong savings on buying your dream house. If you are thinking of applying for a home loan as a senior citizen, here are five things you must consider.
You can take a loan as a senior citizen
You visited a lender’s home loan web page and saw the upper age limit of 60 as the first eligibility criterion. Don’t be disheartened, because several lenders offer home loans for senior citizens as well. However, these loans are usually of a small principal amount since the lender may doubt your repayment capacity.
Joint loans are a fantastic option
Because of income constraints and uncertainty on repayment capacities, lenders often hesitate to provide home loans for senior citizens. An excellent option you have in such a case is choosing a joint home loan. Not only do joint home loans increase your eligibility, but also reduce the home loan interest rates for senior citizens if taken with a female co-applicant. Therefore, as a senior citizen, you must consider getting your daughter or any other close relative to be the first borrower.
Multiple credit checks will hurt your application
While this tip is not exclusive to senior citizens, it is all the more valuable for them.
Whenever you apply for a home loan, lenders check your credit report to assess your repayment capacity. If you apply for a loan that you are not eligible for and the lender runs a credit check, your score will be impacted negatively. This will make you an unfavorable candidate for future loans. It is, therefore, always wise to apply for housing loans for senior citizens with lenders whose eligibility criteria you qualify for entirely. Before applying for a home loan, use an online home loan eligibility calculator to check your home loan eligibility with different lenders.
Low loan-to-value ratio helps
Loan-to-value ratios can be defined as the ratio between the amount of loan a bank sanctions, and the sum you give as a down payment. A lower loan-to-value ratio would require one to make a larger down payment but will increase the approval chances for home loans for senior citizens. Doing this will also make EMIs cheaper.
Home loan EMI calculators are your friends
You might be dependent on your pension right now for repaying your loan. This means that at the end of each month, you might struggle to pay your EMI, especially if you don’t have a repayment plan in place. To sort and plan your finances, use a home loan EMI calculator. Enter the home loan interest rate, amount, and tenure and gauge how much you will have to spend per month.
These quick tips will help get home loans for senior citizens quite quickly. Additionally, it is always a good idea to scour through lenders and find the most affordable and hassle-free home loans. Tata Capital is one such lender, offering easy home loan starting at 8.5% with flexible repayment tenures.
We understand the constraints you might face as a senior citizen; therefore, our representatives are always available to answer your questions and guide you through the loan process. Contact us today to get a housing loan for senior citizens.