Justifying your home loan eligibility is usually a lengthy and tedious process. Your loan application needs to go through an approval and verification process. Different lenders emphasize different criteria. Generally, they also set their own age limit for house loans.

Lenders follow this age eligibility criterion strictly to determine if they can avail of the loan sanction without any risk of default. Financial institutions offer home loans for a period of up to 30 years. The younger you are, the longer the ability to choose a longer loan tenure due to a higher number of working years in contrast to those nearing retirement age. As a result, many financial institutions set a definite age criterion for loan applicants.

Apart from the age eligibility for a home loan, lenders also consider your income, assets, liabilities, qualification, savings, and credit history before sanctioning your loan.

The minimum and maximum age limits for home loan applications are as follows:

You should be a minimum of 21 years at the time of loan application, and a maximum of 65 years at the time of loan maturity.

Please note that this age limit criterion may vary for different financial institutions.

What Is The Best Age To Apply For A Home Loan?

The answer to the question is ambiguous. The perfect time to buy the home depends upon the individual buyer; when he is ready to pay the loan EMI. Ideally, you can apply for a home loan in your mid-to-late twenties or early thirties. At this age, you are youthful, well employed, and can pay EMIs from your monthly salary. But you can also consider taking a home loan a bit later in life when you have saved enough to make a larger down payment and pay a smaller EMI.

Now, let's discuss the benefits of opting for a home loan during different phases of life.

Advantages Of Going For A Home Loan In Your Twenties Or Early Thirties

Generally, the minimum age limit for a home loan is 23. It is the age in which you would have typically completed at least two years of employment and have a penchant of spending extravagantly. Going for a home loan and paying monthly EMI instalments can save you from unnecessary expenditure.

Another benefit of applying for a home loan in your twenties or thirties is the ability to choose longer home loan tenures. The longer the loan tenure, the smaller the EMI instalment amount, thereby increasing the affordability of the home loan. Moreover, going on for a home loan early in life can help you close it early and dedicate your savings towards other crucial things during the later years of your professional life. The best benefit of taking a home loan in early life is that you have lesser financial responsibilities and a lot of flexibility before the burdens of married life.

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Advantages Of Going For A Home Loan In Your Forties And Fifties

Every bank/ financial institution lays down its own maximum age limit for a home loan. Although almost all the lenders permit you to run into debt in your forties and fifties, the age at the completion of the loan tenure cannot exceed 65 to 70 years, depending upon the maximum age limit laid down by your lender. Taking a home loan in your forties or fifties has a few other advantages as well. For example, you can make a higher down payment with the savings accumulated by you over a period of time.

A higher down payment amount also means a lower interest rate on the home loan, thereby decreasing your monthly EMI installment. The age of forties is a pivotal period in your life. You must be in a good leadership position in the corporate world with a decent salary package or have a well-established business. In other words, by this time, you must be well-settled in your career. It means you would have a better maturity level and a better clarity about the permanent residing place post-retirement.

You can also access a joint home loan with your working spouse or your financially independent child. The benefit is that you become entitled to a higher loan amount and a lower individual EMI outflow. Both you and your co-applicant can benefit from income tax concessions as well.

Must Read: Tax Benefits on Joint Home Loan

Conclusion

From the above discussion, it is evident that the maximum age limit of housing loan borrowers has little to do with the prime time to take a home loan. A good rule of thumb is that whether you go for a home loan in your twenties, thirties, forties, or fifties, you should feel comfortable with the EMI amounts and be able to recoup the loan without defaulting. If you are interested in learning about the benefits of a home loan, you can check out SMFG Grihashakti home loan page.