There’s nothing which brings you more peace of mind than living in your own home. Everyone knows that owning your own home means a lot more than just a roof over your head; it’s a life-changing decision for any salaried individual.

With property prices spiralling out of control, a Home Loan is the best way to purchase a house. Financial institutions like Bajaj Finserv are now offering Home Loan on low interest rates, making them extremely viable for youngsters looking to acquire property.

Apart from the money and documents required for a Home Loan, there are several important things you need to look at while buying a house like – what is the best age to choose a Home Loan? When do you apply for a Home Loan? Should you wait till you’re well settled and have a lot of savings? Or should you take the plunge when you’re young and invest right now?

Your ‘Credit’-bility

A credit or CIBIL score is calculated on the basis of your financial standing and history. This score gives the lender a fair idea of how financially stable you are and if you are capable of repaying the loan amount on time.

If you’re young and haven’t made too many investments there is a chance that your score may not be too high. Even if you’re older and haven’t made any major investments, you might have to a work a little on your finances to improve your credit score.

The point being, it might be easier to secure a loan if you’re older and have invested wisely in the past. But even a young individual with sufficient savings and a stable job has a high chance of getting his application approved without any trouble.

Early Bird Gets the Worm

You may already be aware that there is an age restriction in place for any kind of loan. For most Home Loans the minimum age to apply is between 18 – 24 years and the maximum age is between 60 – 70 years.

Your EMI and tenure is determined on the basis of your age. If you’re younger you would get longer tenures and lower EMIs, and if you’re older you get smaller tenures and higher EMIs.

If you’re in your 20s, there is also a high chance that you can get an extension on your loan tenure with a minimal increase in your EMI. But if you’re in your late 40s, it could be hard to do so without considerably increasing your instalment.

Applying Foresight

Remember, a Home Loan is meant to be a long term investment which is capable of providing you with an extremely secure future.

This is important for the young loan seeker as the right investment can help you reap the benefits of rising land costs in the future. But if you’re paying big EMI amounts because of your age, your returns may not be as high as you expect them to be.

Contrary to popular belief, being older doesn’t necessarily mean that your Home Loan eligibility is higher. In fact, applying for a Home Loan at a young age may even give you an edge over the older applicants.

Applying for a loan is no longer a tedious process and doesn’t require spending hours at the bank. Organizations like Bajaj Finserv let you apply online for Home Loans without ever having to enter a bank. You can even check if you’re getting the best interest rate and tenure for your age, by using the Online Home Loan EMI Calculator for free on the Bajaj Finserv website.

Hence, if you’re in your early 20s, start planning your investment and save up for the down payment. This way you can make sure you get the best deal on your loan with a long tenure and low EMIs, and effectively reduce the pressure of repaying your Home Loan when you grow old.

So don’t debate searching for your ideal home.

Apply for Home Loan Online Check your Home Loan Eligibility