Some financial institutions have banking practices which don’t allow home loans for mature borrowers. If you are 40, banks may sanction you a loan but cut down the borrowing tenure so that your home loan is paid back before your retiring age which is around 60 to 65 years. For those who have crossed the half century mark, there are no fixed rules or guidelines by banks to give out home loans.
So it certainly becomes difficult to get a home loan if you are middle-aged and to make it possible, you have to produce a lot of documentation and have a smart exit strategy to get an approval on your desired home loan.
You may be wondering that how can you manage to get a home loan after you are 50 years of age? The thumb rule is to find a lender who has adjustable policies and who is willing to bend a few rules to comply with your request for a home loan. You can follow these tips of getting a loan if you are 50 and above-
You must have a defined exit strategy
You must try to clear your debts before your retirement
You must apply where the lender favors and approves of mature borrowers
Your exit strategy can vary according to your asset position, your income and your retirement plans. You can downsize to a smaller home or sell your assets such as an investment property or your shares to secure a home loan. You can also pay out your loan with a lump sum from your superannuation or from the ongoing income of your superannuation.
Some of the banks allow you to borrow money even if you are above the age of 50. This can happen if you can prove your returning capacity for a stipulated period of time. Banks require proof that you can repay them back without any hardships. If no exit plan is provided then the tenure of the loan cannot exceed the age of your retirement age.
You may be 55 and above but you can still get a loan approved if you have a steady source of income to repay regularly. Almost all lenders will ask for a written exit strategy, evidence of your superannuation, and other assets that can be sold off to repay your loans.
More often than not, you may find a lender who will go that extra mile to build your case to get you a loan approval. So there is hope for people of 50 and above to get a home loan approval with a little extra-paper work and the right strategy.
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