The facility of the home loan is one of the best funding solutions that you can rely on if you are looking to buy a new house. Based on your home loan eligibility, you can get a higher amount to fund a home of your choice.
But when it comes to the
home loan, you ought to consider a few factors as it is a big-ticket solution.
And the home loan tenure is one of them.
But when it comes to
selecting the best home loan tenure, you ought to consider a few things. Read
on and explore more as this post sheds more details!
- Your monthly income
Once you avail the home
loan, then you would need to understand that the home loan EMI is going to
hamper your outlays for a long time. And it is where your income plays a big
role in deciding the tenure of housing finance. Opting for a shorter tenure
would mean paying bigger home loan EMIs. On the other hand, selecting the
longer tenure would lead to paying smaller loan EMIs. Hence, if you want to
give some breathing space to your outlays, then you should opt for the longer
tenure. The only disadvantage of the longer tenure is paying a bit higher
interest charges compared to a shorter tenure.
- Your age
When it comes to the home
loan tenure, your age does play a big role. The younger you are, the more
workable years you will have. Thus, lenders may have no issues in letting you
repay the loan money over a longer tenure. If you are aged, then you may not
get the approval for a longer tenure as your workable years is less.
- Housing loan interest
rate
The applicable home loan
interest rate also affects the loan tenure. The rate of interest is applied on
a yearly basis. It means that longer your tenure is, the higher will be the
rate of interest that you would need to deal with. The shorter is your home
loan duration; the more will be your EMI. But you will pay lower interest
charges. If you want to calculate the exact rate of interest on your home loan,
then there is an easy solution. You can use the home loan EMI calculator on a lender’s platform that
you are willing to apply for the loan with. This way, you can know the payable
EMI amount + total interest. Based on the loan tenure that you select, your
interest rate will fluctuate.
- The property that you
are buying
The next thing that matters
while helping you determine your home loan tenure is the property that you are
purchasing. Everyone wants to choose a property that may provide them with
luxurious amenities. But with your desires, the price of the property is bound
to go up. The higher is the price value of your property, the more burdens you
will have on your income. If you do that, then you may have to pay way too
higher EMI every month. And that’s where the selection of the property matters.
You should buy a property on the home loan that your income can support and not
what you desire. It will help you breathe easy and pay off the balanced EMI per
month. If you are lack of ideas, then you should consider contacting known
property advisors. They may shortlist some best properties under the budget
that you may have for the home. This way, you can buy one that matches your
needs and the repayment capacity the best.
read more: Secured Vs Unsecured Loan: Know Which Should You Choose?
If you are able to consider
the discussed aspects while availing the home loan, then you can help yourself
and pick the loan tenure that matches your needs the best.
The home loan tenure may go
up to 20 years, and if your income is lower, then you should go for the
maximum.
It will help you move into
your home without worrying about finding it tough to deal with your expenses
while making repayments.