123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Investing---Finance >> View Article

Age Advantage – Does Your Age Matter When Applying For A Home Loan?

By Author: Aishwarya Mahurkar
Total Articles: 291

Home loans tend of be a loan term in nature and require the borrower to pay bank the banks for several years. It is for this reason that both age and income of the applicant play a huge role when a bank considers their home loan application. Even if an applicant who has a high income level if he is older in age, the loan amount he may will eligible for will be lower. You can check your eligibility using home loan eligibility calculator. The reason why this occurs is that the bank may be worried that you may not be able to continue work as you get older, causing the income to reduce and hence making it difficult for the bank to get back the money they loaned. Thus it is easier for younger loan applicants to obtain home loans for tenures such as 20 years as compared to those closer to the retirement age. A long tenure is usually desired because it makes the EMI payments each month a lesser burden on the borrower. It also allows one to apply for a higher loan amount.

There are however a few steps that applicants who are older in age can take to get their home loan application approved:

• Age is not the only factor that a bank considers when looking at a home loan application. An applicant can use other methods to improve their eligibility. Since past loans can affect an applicant’s credit score, one should try to pay off all their old loans before applying for a new one. This will help improve one’s credit score and increase their chances of getting their application approved.

• If you are earning a high salary, you can use that to your advantage. If you are able to convince the bank that you will be able to repay the high loan amount, your application can be approved. One can also opt for a loan for a shorter tenure making it easier for the bank to approve it. If the applicant earns such a high income, the shorter tenure should not affect them.

• An applicant can also get a younger family member as a co-borrower for the loan. A borrower who is of a higher age can use this to boost their eligibility for a home loan. Most banks provide a higher cut-off for the age limit when a younger co-borrower is present. This allows an applicant to obtain a higher loan amount for a longer tenure.

Home loan applicants who are older must not be disheartened. They can still get the loan amount they wish if they follow the above steps. Also, older applications tend to have a higher creditworthiness which is appealing to banks. This can be used to one’s advantage to get the loan they desire.

Author Bio :

The author is a seasoned writer on finance topics and she articulates aspects that are important to people availing the home loan facility. She writes about a variety of topics covering the home loan documents, rates & the uses of home loan eligibility calculator that help to make the best decision.

Total Views: 121Word Count: 520See All articles From Author

Investing / Finance Articles

1. All You Want To Know About An Nro Account
Author: Samantha Kennedy

2. Why You Must Outsource Accounting Services Sans Any Doubt And Fear
Author: Lee Bruce

3. Why Door To Door Loans Had Been So Popular Till Now?
Author: David Brown

4. The Latest Trend In Door To Door Loans.
Author: David Brown

5. The Ultimate Revelation Of Door To Door Loans.
Author: David Brown

6. Growing Your Company With Invoice Factoring Funding
Author: Nova Cash Flow Finance

7. All Eyes On The Following Intraday Cash Strategies
Author: robin scott

8. Choosing Chartered Accountancy Profession With Number Of Possibilities
Author: Austin K Loader

9. Greater Noida Triumphs Over Gurgaon To Invite With The Finest Golfing Luxury Living – The Hemisphere
Author: The Hemisphere

10. Towards Benchmarking- Efforts Made Towards Improving Transport Efficiency
Author: Dylan Munro

11. Tips For Ambitious Property Investors
Author: Charlie

12. Need Of The Hour For Investors - Equity Research Reports
Author: Aastha Kapoor

13. Critical Guidelines For Availing Short Term Loans In United Kingdom
Author: David Brown

14. How Do Banks Benefit From An Asset Reconstruction Company In India?
Author: Nidan Narkhade

15. Long Haul Auto Loan: Understand The Pros And Cons Before Saying Yes
Author: David Brown

Login To Account
Login Email:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: