Is the time to finally retire in life approaching you? So what’s the plan for cherishing retirement life? Fulfill the dream of owning a Flat in Kolkata? A dream that’s been overshadowed by liabilities & responsibilities till now?
While this wish of yours is most delightful, get aware of one aspect. It’s your retirement fund, the money earned by working hard throughout life, you will be investing.
Therefore, making the move in a conscious manner is of utmost importance – ensuring no waste but the best usage of your lifetime’s income.
How to get conscious? Well, to offer you real-time moral support, here emerges a:
Pro Guidance For Senior Home Buyers
Each tip is tried, tested & proved!
#1 Opt For Lower LTV
To state most practically, a 60+ individual pursuing a home loan gets a quite short repayment tenure (10-15 years), considering the maximum age eligibility being 70(for applying) to 75 (for repayment) in banks & reputed financial organizations.
A shorter repayment period also spontaneously increases the EMI size.
But, you can surely deal with this situation tactically, by –
⁌ Going for a decreased loan-to-value (LTV) ratio. The standard range is 75% to 90% of a property’s price; try adhering to the beginning yardstick by making as much of a higher down payment as possible.
⁌ A lower LTV ratio means lesser EMI obligation, and it also strengthens your chance of getting quick loan approval from any & every lending organization.
#2 Commit Add-On Collaterals
A true smart move to make for enhancing your eligibility as a senior home loan pursuer. As per one famous senior home buying assistance executive:
⁌ Retirees can mortgage own high-value collaterals like equity shares & mutual funds to the lending bank or financial body for doubling up the approval amount.
⁌ This hack also reduces the lender’s risk & quickens, in effect, the approval process.
#3 Include A Co-Applicant
Along with a short repayment tenure, a pensioner or senior person with no fixed monthly income may not meet the income criteria a lender requires.
One perfect hack to resolve both these issues is that of having a co-applicant while applying for a home loan. Note that-
➼ An earning co-applicant, who is also a family member (spouse or child) improves your possibility of gaining a much higher loan amount
➼ And availing tax deduction on principal and interest amount – as per Sections 80C & 24
If the family’s decision will matter in finalizing the home to buy, why not involve it into the buying process? Give it a thought.
#4 Select Most Carefully
While age is indeed just a number & no obstacle to cherishing life in the way you wish for, there come up certain matters for consideration, when post 60, you proceed to purchase an apartment/house.
Are there healthcare facilities nearby? Do the home delivery services function in the locality? How good is the location’s transport infrastructure? Is the area calm & quaint with good-enough greenery around?
Check all these criteria while exploring the Flats in Kolkata & pick the one fulfilling them. To thus relish a smooth retired life at your desired home.
Also, when moving into a housing society, make sure it is equipped with an up-to-date security system & 24*7 electricity & generator facilities.
Anything else? Endeavor for an apartment with a planned interior featuring compactly designed spaces & rooms – to thus let no senior citizen experience the malady of a cluttered home.
#5 Prepare Thoroughly
In the opinion of 1 veteran conductor of senior citizen home buying program, 60+ home buyers need to maintain a strong financial ground more than any other age group, to thereby be as much of eligible as possible for their required home loan.
Some effective tips in doing so remain:
➼Closing any other loan prior to applying for a home loan
➼ Not utilizing more than 30% of the monthly credit card limit for 6 months before the loan application
➼ Keeping a credit score within the 600-700 mark
➼ Pledging to EMIs not exceeding 50% & not lower than 40% of your pension or retirement allowance. EMI affordability, especially in the case of senior citizens, is one of the crucial determining factors for a home loan lender.
In addition, make the most in-depth research about senior home buying schemes & interest rates available in the present market.
Is the plan now appearing clear-cut to you? Why delay executing it?
As for exploring Flats in Kolkata & possessing the best one for you, simply connect with Team Realtech.
We commit to catering apartments suited to senior citizens’ needs – to the limit possible.
