Home loan after 50


#1

Why is it a disadvantage to go for a home loan after 50?


#2

When you opt for a home loan after you have crossed 50 years, you may only get a shorted tenure as banks are reluctant to offer loan where the tenure ranges into an age where the borrower is not working. So if at 50 you opt for a home loan, the maximum loan tenure
you may possibly get is between 10 to 15 years at best or even lower.


#3

Hi Aswani,
The first disadvantage is that most lenders will be very reluctant to give a Home Loan to someone who is nearing retirement. Your income after retirement will be negligible and hence your repayment capability will come into question. Even if lenders provide a loan, the tenure of the loan will be very low. This means that the EMI will be high. A high EMI in your 50s will lead to you compromising on your retirement investments. It might become a hindrance and prevent you from meeting goals such as child’s higher education. Here’s and article with more information - https://blog.bankbazaar.com/getting-a-home-loan-in-your-50s/.
Cheers,
BB Expert