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Young working professionals think about their career seriously. However, when it comes to spending and saving, their vision takes a backfoot. This makes them miss out on the advantage of making investments in the early 20s and 30s. It is the period where you have substantial income with lower responsibilities.
Lenders recognise this and provide better deals on home loans to young applicants. You can check the same by using the home loan eligibility calculator. There are many other reasons to apply while you are young.
Here are some of them:
Longer loan tenure: Banks and financial institutions offer loan tenure based on your age. They analyse the years left of your employment to calculate home loan eligibility. Time is by your side when you are young. You have the scope needed to grow your career. Hence, you qualify to get a longer loan duration with lesser instalments to pay. It is highly convenient as housing loans get sanctioned for up to 30 years.
Investment for the future: Locking funds in property is one of the safest approaches to grow them. As the real estate market is a booming one with increasing costs and value, today’s investment can reap immense returns tomorrow. Choosing the right location and house impacts the earnings you can expect. It is also a liquid asset that you can sell anytime and benefit from it.
Healthy credit score: Applying for home loans while having a stable income gives you the perfect opportunity to build a favourable credit ranking. You have lesser responsibility which translates to lower-income distribution. This way, you can contribute your income towards loan repayment with ease. This increases your home loan eligibility. Building your credit score with home loans at a younger age also increases your eligibility for other credit options in the future.
Additional income: Even if you have no use for the house you buy in your 20s, it is a great backup option for emergency accommodation. You can also utilise it to create additional monthly income by renting it out. The steady earnings with the investment returns you reap later make it the perfect way to put your savings to use.
Tax benefits: If taking a home loan seems like a substantial financial commitment to you, there are certain benefits you should consider. You get more than easy eligibility for home loan. You qualify for tax exemptions if you fall under the tax bracket. You get them in the form of deductions of up to Rs. 2 lakh under section 24. on home loan interest rates. The principal amount is also eligible for deduction of up to 1.5 lakh under section 80C. 0
These are some of the advantages to expect when you apply while you are young. The home loans eligibility criteria become flexible for young applicants.
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