In an era of millennials focusing to build career and fulfil entrepreneurial dreams, getting a home to call their own has become one of the significant aspects. Since early days, owning a home has been one of the biggest financial decisions one can ever make. There are quite a number of attributes based on which banks approve the housing loan for home aspirants. There are several factors which play an integral role when it comes to evaluation for your home loan eligibility. Some of the home loan eligibility factors include: 

  • Monthly Income:This can determine the amount of home loan an applicant can get
  • Property Attributes: Banks consider specific criteria before granting a loan such as valuation of property, age of the property, the location, builder profile etc
  • Loan Duration: It refers to the number of years for which you are opting for loan. Longer the tenure, higher will be the interest paid and lower will be the amount of EMI and vice-a-versa. Different banks have different criteria to determine the home loan tenure for the loan and tenure is also dependent on applicants age
  • Interest Rates: Banks today are providing competitive interest rates and you can choose accordingly
  • Credit History: Credit history is a record of a borrower's responsible repayment of debts. Basis individual’s credit payment history, a score is given to individual which Is used by banks to decide on giving home loan for the applicants
  • Co-applicant: In case you want to increase the housing loan eligibility, home aspirant can include a co-borrower and increase the eligible income. Applying in the category of co-borrower increases your chances of loan approval without much complications

Age is one of the integral aspects for banks when it comes to getting a home loan sanctioned. Early savings and investments are highly recommended because banks and other financial institutions consider the age when it comes to getting a housing loan. The younger the age, higher is the tenure available to a home loan borrower. Which means, if one decides to take a loan in her/his 30s, he or she can get a loan up to maximum tenure offered by banks. 

Early home loan borrowers are generally considered to be more financially stable to repay the amount. This is because lenders look for a person who has a regular and growing income rather than someone nearing their retirement. Basically, your age to get a home loan will be the deciding factor for home loan tenure. The reason being, banks assume the responsibility to ensure that you can comfortably afford to repay the loan without undue financial constraints. 

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.