We are often confused as when to buy a new property and whether to buy it upfront or take out home loan. This blog provides an insight on what is the correct age to apply for a home loan.
|Age is not just a number when it comes to applying for a home loan in India. Every bank has its own mortgage loan age limit for every loan borrower. The minimum and maximum age limit for home loans differs from bank to bank, however the ideal home loan age criteria for the borrower is 21 years to up-to 75 years.|
Yesterday I came across a beautiful marathi advertisement. It was a property advertisement that featured an old couple in their 60’s overwhelmed and delighted to have their dream come true. Together they shared a flawless happiness. Their twinkling eyes had a sense of achievement and satisfaction. “Thoda ushirch jhala (it took me longer)” to fulfill our dream, said the man while taking her in his arms. Really! Is there any ideal age to buy a home?
A home is a place made of hopes and dreams. It is a place where you live with your loved ones, enjoy and make memories.Since, a comfortable house is a great source of happiness we all dream of buying our dream house sooner or later. While most of us prefer buying upfront with our own funds, many of us rely on the banks to make our dream come true.
Why is home loan eligibility age limit important to avail home loan
Age is one of the crucial factors in home loan. It is the age that decides your home loan tenure. The maximum tenure for home loan allowed is for 30 years. The higher the loan tenure the lesser are your home loan EMIs and vice-a-versa. Paying lower EMIs is the main reason you can apply for a housing loan in early ages. When you apply for a house loan at an early age, banks are more assured of the timely repayment of your loan. It is assumed that at an early age you are more energetic, enthusiastic, active and employed with a regular flow of income and are likely to pay your EMIs on time. The home loan minimum age of the borrower as set by banks is 21-23 years. Banks give loans only to those borrowers who have a regular flow of uninterrupted monthly income. Also, when you are young it is likely that you will continue to be employed earning a higher pay scale, increment and position in the future, thus having a better financial flexibility to serve your EMIs.
There are many other benefits of applying for home loan at an early age i.e. in your 20’s and 30’s.
- Since your EMIs are lower, timely repayment of the EMIs are possible.
- EMIs bounces are unlikely.
- You can comfortably repay your loan hassle free and save more for your future & family.
- You can save for your children’s higher education abroad. (If you are falling short of money for your kids higher education then you must read this – how to arrange fund for children’s education)
- Plan for your retirement pension.
- Buy/invest in another property.
Moreover, when you serve your EMIs on time you are in the good books with banks and can easily avail additional funds through home loan top-up loan, mortgage loan, commercial loan or any other loan at the lowest home loan interest rates/ lowest mortgage loan interest rates.
What is the right time to buy a home
Practically speaking, there is no such right time to buy a home. When you are financially ready and capable to pay the heavy installments, it is the right time then. No matter even if you are heading towards your retirement, if you have saved a comfortable amount of money it is never too late to buy a new house. You can also buy a house on a home loan. The maximum age limit of the housing loan borrower cannot exceed more than 65 years of his age. Therefore, you may add your working children as a co-applicant to the home loan and apply for a joint home loan with the bank to get higher home loan eligibility. To check your mortgage loan eligibility, use our home loan EMI calculator.
Benefits of applying for a housing loan in your late 40’s & 50’s
By the time you are in your 50’s, it is most likely that you have saved money for down payments for buying a property. When you have higher own-contribution funds to purchase a property, you need not apply for higher home loans. You may apply for a lower home loan amount and have lower per month installments. Moreover, your chances of home loan approval is equally high due to lower funding risk for the banks. Banks are more comfortable to fund when the LTV ratio is low. Also, it is important that you have maintained a good CIBIL score while applying for a loan. If you have taken other loan/loans such as personal loan, car loan, business loan or are using credit cards, ensure you pay all the EMIs and the outstanding dues on or before time and maintain a clear repayment track history/ record to get your home loan approved by the banks. Banks rejects the home loan application of the borrower having poor CIBIL score and repayment track history.
Mentioned below are some of the other benefits of applying for a house loan in your late 50’s.
- You get sufficient time to arrange for your own contribution funds.
- If you are salaried you can repay the home loan faster with your after retirement funds.
- If you are self-employed/ professional you can repay loans up-to 75 years of your age.
- Your joint home loan application with your children can give you longer repayment tenures and lower EMIs.
- With good CIBIL scores you can also enjoy the benefits of lower home loan interest rates.
Housing Loan Age Limit
The minimum housing loan eligibility age limit for all borrowers starts from 21 years and the maximum age of home loan borrower who is self-employed is up-to 75 years & the home loan maximum age limit for salaried is up-to 60 years or the retirement age whichever is earlier. Given below are the age criteria for home loan with the top banks.
|Bank Name||Home Loan Age Eligibility Criteria|
|Minimum Age For Home Loan||Maximum Age For Home Loan|
|ICICI Bank||Minimum ICICI home loan age limit is 21 years||For Salaried – Maximum ICICI Bank home loan age limit is 60 years.|
For Self-employed/ Professional – Maximum age limit for home loan is 70 years.
|HDFC Bank||Minimum HDFC home loan age limit is 21 years.||For Salaried – Maximum age limit for home loan in HDFC bank is up to 60 years.|
For Self-employed/ Professional – Housing loan maximum age limit is 75 years.
|SBI||Minimum SBI home loan age limit is 21 years.||For Salaried – Maximum age limit for home loan in SBI is 60 years.|
For Self-employed/ Professional – Maximum age for home loan in SBI is 65 years.
|Axis Bank||Minimum Axis bank home loan age limit is 23 years.||For Salaried – Maximum age for home loan application is 60 years.|
For Self-employed/ Professional – Maximum age limit for housing loan is 65 years.
Question & Answer
Q. What is the home loan age limit?
Ans: Home loan age limit is 21 years – 75 years.
Q. Are there any home loans for 55 year olds?
Ans: Yes. You can apply for a home loan even in your late 50’s or even if you are 55 years old subject to your financial stability and eligibility.
Q. What is the age eligibility for home loan with HDFC Bank?
Ans: HDFC home loan eligibility age limit for the borrower is 21 years – up-to 75 years.
Q. Can I apply for a home loan at age 60?
Ans: Yes. If you are self-employed/professional in your 60’s, a deviation can be taken for maximum home loan tenure for 10-15 years depending on your profile, income source, CIBIL scores and income stability. But if you are salaried and want to apply for a home loan in your late 60’s following are the conditions:
- Your company allows you to work even after your retirement for a few more years with the same pay scale or more.
- You will be receiving pension income in the future.
- You have income from other sources such as rental or agricultural income.
- You add a working co-applicant whose age can be an advantage to your home loan tenure.
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