17 MAY, 2021

By the age of 35, many people prefer being settled in a stable job and starting a family. It is also the age when they might start planning to fulfil their financial goals, such as purchasing the favourite car, buying a house, etc. If you are in your 30s, you might have similar goals. Yes, you can wait until you have enough savings to invest in a house. But, why delay it when you can move into your home by opting for a home loan? With a home loan, you can easily purchase that dream home and continue repaying the loan comfortably over the coming years.

While it is never too early or late to buy a house, it could get difficult to purchase a house property, as you grow older. Buying a house before you turn 35 has many benefits. Go through some of these below.

Longer loan tenure

As you grow old, the maximum tenure that you can avail a loan for reduces. For example, if you take a loan at the age of 50, the lender might not give you a loan tenure of more than ten years (considering you would be nearing retirement). Therefore, when you buy a home before turning 35, you can choose a comfortable tenure that helps you repay the loan in easy EMIs. Purchasing a home before turning 35 can also help you repay the loan while working so that you can retire debt-free.

Higher loan eligibility

Usually, there are fewer financial obligations and more opportunities to earn when you are in your 30s. This enhances home loan eligibility. Higher eligibility improves the chances of loan approval, helps you opt for a longer tenure and get the loan at a lower interest rate.  

Higher loan amount

With a higher eligibility, you can expect to get approved for a higher loan amount. Typically, when in 30s, you have a stable income, your liabilities are less and you have more years to repay. These factors are beneficial for credibility and can help you avail a higher loan amount for that dream home. For example, when you are in your 30’s it is unlikely for you to have major responsibilities like kids’ higher education or major healthcare expenses. Moreover, as you have more time to enhance your career by upskilling, switching to a better job with a higher pay.

Higher chances of value appreciation

When you buy a house before turning 35, you can take the benefit of capital appreciation of your property. Although the expected percentage of capital appreciation depends on various factors like the location of the property, inflation rate, etc., it is usually seen that there is an increase in the property value over a longer duration.

The benefit of a step-up facility

You can take the benefit of a step-up facility when you avail a home loan early in life. In the step-up facility, the EMI is increased as per the expected growth in your income. It can help you repay as per the income growth without creating pressure on your budget.

Buying a house before turning 35 can give you a sense of achievement and pride. It can also give you a morale boost, as a significant life goal would be achieved. So, what are you waiting for? Apply for a home loan today!

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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.