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5 Points to Keep in Mind When Applying for a Home Loan in Your 40s

By Finserv MARKETS - Apr 27,2019
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Points to Keep in Mind When Applying for a Home Loan in Your 40s

Gone are the days when people with a fixed salary spent all their working years weaving the dream of owning their dream home during retirement! The current scenario is a result of pre-existing schools of thought undergoing a massive makeover. Now, it takes only two years of employment to become eligible for a home loan. As the name suggests, a home loan aims at helping young professionals own a house at an early stage in their lives, without breaking a sweat.  Though at the beginning of your career, buying a home comes with several benefits, giving it a thought in your 40’s doesn’t curb the benefits either. However, to make the most of a home loan in your 40’s, there are some points to keep in mind while applying for a home loan.

Shorter The Tenure, Lesser The Worry!

The upper limit of the tenure on a home loan touches 30 years. While in your 40’s, obviously you can’t opt for such a long tenure, as a home loan limits the highest age of borrower to 60. So, at your 40’s, the maximum tenure comes down to 20 years. However, the financial advisers suggest going for a repayment tenure that’s less than20 years to save interest payments.

Big Down Payment

As an employed person in his/her 40’s, you must have gathered a decent amount in your savings account. Provided that, you can utilize a part of your savings to settle a bigger home loan down payment, leaving an emergency fund. Needless to say, it effectively brings down both the loan burden and the interest component.

Think About Part Payments

Part payments work greatly on your home loan. Instead of waiting till the tenure ends, paying off your loan before your 60’s is a great way to not leave any debt burden on your retirement. Also, with increasing age, you are prone to higher health risks. Thus, considering the current medical scenario, having to put up with the medical expenses along with managing ongoing home loan repayment only worsens the situation. To avoid these inconveniences, paying off the loan before the tenure reaches its endpoint is a wise thing to do.

Opt for a Joint Home Loan

A joint home loan comes with an array of benefits. A joint home loan with your working spouse enhances the loan eligibility and ensures tax savings, sharing the debt burden alongside. Adding a co-applicant below the age of 40 years can get you a longer tenure too.

Opt for Loan Insurance

While buying a home at this age, loan insurance becomes essential for you. Loan insurance aims at securing your home loan in the case of death or disability of the loan borrower. You can even avail a term insurance to alternate home loan insurance for added benefits.

The early 30’s might be considered as the best time to buy a home but even at 40’s it is not that difficult when Finserv MARKETS is here to serve you. All that it would take to make your dreams come true is planning the wisest move ahead with us, get the best interest rates, apply online, and avoid running pillar to post for getting your Bajaj Finserv Home Loan approved. It is even better if you are eligible for PMAY scheme. So, why wait? Head over to Finserv MARKETS and apply for a home loan with us today!

Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and exclusive EMI store, all under one roof- anytime, anywhere!


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Bajaj Finserv Direct Limited ("BFDL") is primarily engaged in distribution of financial products and services through its digital platform (“Bajaj Finserv MARKETS”) and inter alia renders services of customer acquisition, providing preliminary credit support activities, fulfilment services and post-acquisition customer services to Banks, NBFCs, HFCs. BFDL is also a registered Corporate Agent (Composite) under valid IRDAI registration number: CA0551 valid till 10-Apr-2024 for solicitation and servicing of Insurance Products. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522