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Senior citizens often find it challenging to buy a home. Multiple factors like a stable job, regular income, high growth potential and a greater number of years left until retirement work in young borrowers’ favour while applying for a home loan. But most senior citizens/retirees live on a pension income, and, on many occasions, they barely meet the home loan eligibility criteria. As such, it's not easy for senior citizens to get a home loan unless they know their limitations and are ready to fulfill the eligibility criteria. If you are a senior citizen and want to buy a home on loan, here are a few key points that you must keep in mind.


(1) Carefully decide the LTV: Senior citizen borrowers usually get a shorter repayment period of up to 10 years depending on the age at which they apply for the loan. So, senior citizen home loan borrowers should carefully decide the appropriate loan-to-value (LTV) ratio.


(2) Having a co-applicant can be helpful : Senior citizens usually get a shorter repayment tenure when they apply for a home loan. Many of them also fall short of fulfilling the income criteria that a lender may require. The best way to address issues related to fulfilling the eligibility criteria is to add a co-applicant while applying for a home loan.


(3) See if you could clear existing loans before applying for a home loan : If you are a senior citizen planning to apply for a home loan, see if you could close your existing loans first if they are close to completion. When a lender checks a loan applicant’s repayment capacity, they usually reduce their monthly income by their existing EMI obligations.


(4) Maintain a good credit score : It's crucial to maintain a good credit score if you plan to buy a home on loan. Lenders may reject your home loan application if you have a very low credit score, or you may end up paying much higher interest rate that could make it even more challenging for you to afford the repayments.


(5) Prefer a ready-to-move-in property : An under-construction property may cost you less money, but it may take at least three years from the day the construction begins for you to get its possession. It means you might have to bear both your home loan EMIs and your rental payments until you get the possession. So, a ready-to-move-in property could be a better option for you, even if doing so slightly increases the budget.