Therefore, a lot of people in India apply for a home loan to be able to fund the purchase of their dream home. Financial advisors suggest that it is best to apply for a loan while you are young so that you have the leverage of time to repay the amount. However, sometimes, people can apply for the loan when they enter the 40s.
If you are in your 40s and are looking to apply for a home loan, considering the following tips will come in handy:
- Improve your credit score The credit score is one of the most important things that the lenders consider while sanctioning the home loan application. So, if your credit score is above 700, the lenders will consider you as a safe borrower, and you have a better chance of getting the loan.
- Increase the down-payment amount One of the best ways to reduce the burden of your EMI payments is to pay a higher down payment. As an individual in your 40s, you may have some savings, you can use this amount to pay a higher down payment than the usual percentage. This will not only help you to borrow less but also will help you to lower your EMI.
- Choose the right lender One of the most important things to consider before taking a home loan in India is choosing the right lender. Today, there are many home loan providers in India, and it is paramount that you do your research about them and choose a lender who offers you the best deal in terms of lower interest, the flexibility of tenure, lower processing fees, prepayment charges. Do a holistic comparison of different lenders before choosing one.
- Apply for a joint loan Applying for a home loan with a co-borrower be it your spouse or one of your children will not only help you get a higher loan, but it will also reduce the burden of the EMIs. Additionally, you can get a higher collective tax deduction. As you are in your 40s, the lenders may consider you a risky borrower, and they may look for an additional source of income, which can help you repay the loan. Therefore, applying for a joint loan is beneficial as the liability of the repayment is spread between two people and the lenders have better chances of recovering the amount.
Click here to apply for a home loan.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
Tuition fee deduction under Section 80C of Income Tax Act
Educating a child can be an expensive proposition for most parents. As the cost of quality education is on the rise, the potential for saving money seems less likely. However, there are tax benefits that can be availed under the provisions of the Income Tax Act, 1961. Recurring expenses such as tuition fees is one such category that qualifies for tax relief, subject to certain terms and conditions.
6 Things you Should Know Before Buying Insurance Policy for Bike
Buying or renewing an insurance policy for your bike can often be overwhelming. Check out this short guide to know the factors you should consider while choosing the best insurance policy for your bike.
PPF Withdrawl: When & How to Withdraw PPF
PPF (Public Provident Fund) is a savings scheme, which is backed by the government on purpose to build a retirement corpus. As PPF is a long-term investment, it comes with a specified lock-in period. Read on to know about the maturity period and the withdrawal systems.
5 Types of Business Loan For Woman Entrepreneurs
There are now many different types of loans options in India for women wanting to explore their entrepreneurial dreams. Read this post to know 5 of the most popular options.