When it comes to applying for a home loan and buying a property, conventional wisdom says, the sooner, the better. However, for many would-be homebuyers, the opportunity never arrives until they’re in their 40s or 50s. Are you also one of them? Don’t worry, better late than never!

You do not need to give up on your dream of purchasing your first home. Simply follow the useful tips given below and make the most of this opportunity –

Pay a Higher Down-payment

Someone in their 40s or 50s usually has a settled career and significant savings under their belt. The savings can be utilised for paying a substantial home loan down-payment. Down-payments are critical aspects of home loans and by paying a higher amount; you can significantly reduce the home loan interest that you need to pay, and thus, the EMI.

Opt for a Shorter Tenure

Typically, lending institutions offer home loans for a tenure of 20 to 30 years. However, for people who are well advanced in age (their 40s and 50s), opting for a shorter home loan tenure may be the ideal option. For instance – If you are 45 years old and you apply for a home loan tenure of 20 years, you may not meet the home loan eligibility; however, if you apply for a shorter tenure, say 12 to 15 years, your home loan may be sanctioned. Moreover, by opting for a shorter tenure, you can pay lower home loan interest.

Educate Yourself about the Prepayment Options

The option to prepay a home loan is a beneficial one. If you have sufficient funds to prepay your home loan, whether partially or fully, you must not miss the opportunity. Prepayment helps in reducing the home loan tenure, especially useful for those in their 40s or 50s.

However, ensure that you explore your options. Certain lenders levy prepayment penalties and allow it only when the amount of prepayment is equal to that of three to four EMIs combined. You can use online home loan calculators such as the home loan EMI calculator for this.

Consider Taking a Joint Home Loan

Due to the age constraint, an individual in their 40s or 50s may not be able to get home loan interest rate, tenure, or loan amount of their choice. But, if the individual applies for a home loan jointly with someone financially stable, the chances of availing higher loan amount, longer tenure, and lower EMIs increases.

Still straddling the fence regarding your home loan? Take the plunge without any worries. However, make sure that you meet home loan eligibility and submit the right documentation for home loan approval. Apart from age, other factors such as credit score, stable income, etc. also play a massive role in ensuring that you get to avail affordable home loan interest rates.

The above factors remove any misconceptions associated with home loans in the bandwidth – any person in their 40s or 50s with a strong financial background can avail a home loan.