Right Time and Age for Availing a Home Loan?

If you are planning to borrow a Home loan to buy your dream house you must know what is the right age and time to do so. Should you go for it early in your career or wait till you start making a considerable sum of money?

Let’s look at some of the factors you need to consider to decide what is the right age to borrow housing finance:

Your Repayment Capacity

Before you apply for a Home Loan, try to calculate your repayment limit. Try to come up with an amount figure you are comfortable paying every month. Keep a close tab on current Home Loan interest rates. For smaller EMIs, consider taking a longer tenure loan. Age plays a big role when choosing loan tenure; the younger you are the longer can be the tenure of your Home Loan, resulting in lower EMI. If you are planning to purchase a home, buy Home Loan early in your career to get longer repayment tenure. However, everything comes with a catch: the longer the loan tenure, the more interest you would have to pay to the bank. So, choose wisely!

 Loan Tenure

Your loan tenure is the most important thing after the interest rate and your age plays a vital role here. The younger you start the longer tenure you can go for. For most Home Loans, the maximum available tenure is 20 years. So, if you apply for a Home Loan in your late 20 to early 30, you can easily  repaying it, and you would also get an attractive interest rate as compared to someone as per your age.

Your Financial Goal

If you decide to opt for a Home Loan early in your career, you would have to maintain a tight financial discipline for longer period of time. At first, you might find it difficult to manage expenses with reduced liquid money available at your disposal, but if you only focus on essential expenses, it is highly manageable. Also, you would have the satisfaction of buying your own dream home and that’s something to be proud of.

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