What is an ideal age bracket to go for a home loan


Buying a home is one of the most important decisions of life and getting it done right is beneficial in the long run. Home loans have become an integral factor when it comes to buying a dream home. There are many banks and financial institutions offering a range of personalised home loans. Considering this, it has become quite easy for individuals to obtain their home loan. There are many factors which go into buying a property. Today, the eligibility of a home loan has become essential while opting for a home loan. It is important to understand the eligibility on the basis of age.

There is an added advantage in buying a property at an early age as it is an asset to the family. However if one waits for a certain period, accumulates enough financial aid and then opts for a home loan, it can work off well. The younger the age to opt for housing loan, higher is the tenure available to the borrower.

Opting to buy young:

There are certain factors which are important to be kept in mind when opting for a home loan at an early age:

  • EMI should generally not be more than 30 per cent of your monthly salary

  • Generate savings early on and opt for financial investments to build the corpus

  • There should be at least 8 to 10 months of emergency fund available to take care of any unforeseen circumstances.

The potential benefits of getting early start is that you can build significant wealth, thus increasing your net worth. This can help you cover your EMIs and also give you a general satisfaction of having saved a substantial sum. Additionally, over a long term, price appreciation can also contribute to your real estate investment.

Opting to wait:

The main aspect of opting for a housing loan at a later stage that is 40+ years is that you may be able to get a home with the savings you have accumulated. A thorough long term financial planning is very crucial while going for this option. Post 40, individuals try to accumulate funds for their retirement. In such case, a home loan can put a dent on the savings.

It is recommended to opt for a housing loan, say in the mid 20s or early 30s, as it improves the home loan eligibility considerably. Financial experts suggest that accumulating 30 to 40 per cent of the home budget can work wonders. This way, there is also a contingency fund ready by the time they reach 35+. It is important to understand that age is an important factor and it has to be coupled with a thorough planning very early. This can contribute to your chances of achieving your goal of owning your dream home.