Are you quinquagenarian and weary of bearing any upcoming personal or educational expenses for your children? Or, you might be planning to retire soon and start off being an independent business person.
You figure out to mortgage your property, but not sure of the approval of the loan as you are on the upper side of 50.
No need to worry, as we will guide you with the nitty-gritty and age factor for a loan against your property.
Let’s discuss the facts the lenders consider to sanction a loan against your property. This will give you a clear picture regarding your concern:
Your Repayment Capability
The lender will evaluate your credit score. Your repayment history would be collected and scrutinised. When it comes to approving a huge loan like a loan against a property, the lenders want to ensure the borrower has the habit of maintaining a balance between his income and savings. Check the loan against property eligibility today.
Payment of any past or subsequent dues promptly improves a person’s credit score and helps the lender in determining if the person is eligible for another loan.
Earning Potential
The lending partner will evaluate your salary, annual revenue if you are a businessman or annual earnings if you are a professional. Stability in earning creates a win-win situation if you are trying to apply for a loan against your property. If you are designated in a reputed organisation or your business has a high annual turnover or you have ample sources of earning, it would be an added advantage to procure the loan.
Age Limit
A loan against mortgaged property is sanctioned to people up to the age of 70 years. So, a big yes to your primary concern that you can apply. However, it is to consider that the lenders might act a little dubious in sanctioning loans to people from the age group of 50. But, if there is certainty in your capability to repay the loan, they might reduce the tenure.
The authenticity of the Property Paper
The lender will check the authenticity of all the paperwork belonging to the property to be mortgaged and it must bear proof of ownership of the property.
Pay Off Existing Loans
The bank would consider your existing loans and assess if you are in any position to bear the burden of further loan and make timely payment. If the bank notices that you do not have the potential to uphold the responsibility of further loan, there are high chances your application will be refused.
Hence, it is suggested to settle your current dues for ease in approval of your application.
Involve a Co-applicant
In-case of a co-applicant with the primary applicant, the lender will merge the earning resources of both persons and then evaluate the repayment capability of the loan. Hence, it goes without mentioning that it increases loan eligibility and higher tax benefits. Since both people share the financial load, it creates greater earning discernibility.
Talk to a financial advisor
Let’s consider, you have geared up with everything you need for the loan application and you fulfil all the above-mentioned requisites. However, it is always advisable not to jump into the decision of mortgaging your property. Take some time out and try to talk to a financial advisor. The person will help you to chalk out your budget and determine your loan repayment capability. It would be possible to narrow down your current expenses accordingly to adjust to the prospective financial obligation.
The requisites for loan application in your 50’s might seem scary, however, there is no need to be disheartened. As there is a saying, ‘When there’s a will, there’s a way’.
It is evident in the present world that many people mortgage properties at their early ages. Hence, putting aside the differences, try to focus on the possible aspects mentioned above to overcome the difficulty of procuring the loan.
