Owning a home offers its own set of advantages. While some are able to grasp it at an early age, others have to wait a long time. Home loans are often available to those over 60 who have a steady source of income, such as a pension or rental income, or who already own their own home. However, the loan policy is governed by the individual norms of each financial organisation.
There are certain lenders that will provide older persons a loan so they may live in their own house in retirement, despite the fact that most banks are reluctant to do so.
Suggestions to Keep in Mind
When applying for a house loan, senior citizens should keep these suggestions in mind to increase their chances of being approved:
It's a good idea to apply for a loan alongside a co-applicant who has a steady job. This will greatly increase the likelihood of receiving a loan. You can add a co-applicant if your retired spouse or son/daughter works and is able to contribute to your application.
Getting a loan is easier if the applicant already owns a piece of property that can be used as collateral. A loan is more likely to be approved when it is backed by an asset.
The lower the loan to value ratio, the better the chances of securing a house loan. This ratio shows how much of an asset's worth is used to secure a loan. This means that if a retiree wants to purchase an apartment for 90 lakhs and needs 20 lakhs in a loan to do so, then the loan-to-value ratio is 1:2 (20/90). This application has a better likelihood of acceptance than one for a loan of 40 lakh.
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