Owning a home seems to be the most significant financial objective that most Indians might have. Absolutely, why not? Owning a home is not only a sound financial decision with higher returns on investment, but it also denotes social standing and prosperity.
Purchasing a home—especially your ideal one—requires a huge financial commitment. There are two approaches you can take in today’s world if you’re planning to purchase a home. Using your inheritance to purchase a home is the fastest route. However, getting a loan to pay for the expenses is the second-best option. Most people choose the second option.
The main concern now that your financial affairs are in order is: When will you think about buying a home? And when is the right time to make decisions about taking out a house loan? Everyone should take out a home loan and purchase a home before the age of thirty. This is the reason.
Why Buying a House Before Reaching Thirty Is Essential
- Extended Loan Term
If you intend to finance your house with a home loan, you should be aware. This type of loan is usually high-interest and long-term. You have two options if you wish to repay the debt on time.
You have two options: either pay a higher monthly EMI or prolong the loan term to pay a lower monthly EMI.
A large number of would-be homeowners select the second option since it allows them to better manage their money. Additionally, if they raise the necessary funds, they’re allowed to pre-close their loan in this way as well.
It is no surprise that the sooner you begin loan repayments, the quicker you finish them. Especially when it is about the longer loan period. So why not apply for a home loan early?
This makes loan repayments easier to complete before the age of 60. This allows you to comfortably cover them while still employed, thereby reducing financial stress.
Top Home Loan Offers in 2024
| Bank | Loan Amount | Loan Tenure | Rate of Interest | CIBIL Score | Processing Fees | Foreclosure Fees |
| HDFC Bank Home Loans | 5.00 Lacs and above | 5 Years – 25 Years | 8.45% – 10% | 650 or above | 0.5% – 1% | 1% – 2% |
| Kotak Bank Home Loan | 20.00 Lacs and above | 5 Years – 20 Years | 8.75% – 10% | 700 or above | 0% – 0.25% | 1% – 2% |
| Bank of India Home Loan | 10.00 Lacs and above | 5 Years – 30 Years | 8.5% – 10.75% | 675 or above | 0.5% – Rs.10000 | 1% – 2% |
| Bajaj Housing Finance Home Loan | 5.00 Lacs – 75.00 cr | 5 Years – 25 Years | 8.45% – 10% | 650 or above | 0.2% – 0.5% | 1% – 2% |
| PNB Housing Home Loan | 5.00 Lacs – 20.00 cr | 5 Years – 30 Years | 8.75% – 14% | 625 or above | 0.25% – 0.5% | 1% – 2% |
| Mahindra Finance Home Loan | 3.00 Lacs – 75.00 Lacs | 5 Years – 25 Years | 9% – 15% | 650 or above | 1% – 3% | 1% – 2% |
| Tata Capital Home Loan | 30.00 Lacs – 7.00 cr | 10 Years – 30 Years | 8.6% – 11% | 750 or above | 0.2% – 0.5% | 1% – 2% |
| Aditya Birla Home Loan | 25.00 Lacs – 25.00 cr | 5 Years – 25 Years | 8.9% – 11% | 675 or above | 0.5% – 1% | 1% – 2% |
| Federal Bank Home Loan | 50.00 Lacs – 20.00 cr | 5 Years – 25 Years | 8.5% – 10% | 675 or above | 0.5% – Rs.15000 | 1% – 2% |
| IDFC Bank Home Loan | 10.00 Lacs – 5.00 cr | 1 Years – 30 Years | 8.85% – 9.25% | 680 or above | 1% – 1.5% | 1% – 2% |
| ICICI Bank Home Loan | 50.00 Lacs and above | 5 Years – 30 Years | 8.6% – 10% | 700 or above | 0.25% – 0.5% | 1% – 2% |
| Standard Chartered Home Loan | 25.00 Lacs – 25.00 cr | 5 Years – 25 Years | 8.5% – 10% | 700 or above | 0.5% – 1% | 1% – 2% |
| SBI Bank Home Loan | 10.00 Lacs and above | 5 Years – 30 Years | 8.5% – 10.4% | 650 or above | 0% – Rs.10000 | 1% – 2% |
| Bank of Maharashtra Home Loan | 10.00 Lacs and above | 5 Years – 30 Years | 8.5% – 9.65% | 675 or above | 0.25% – Rs.500000 | 1% – 2% |
| Indian Bank Home Loans | 10.00 Lacs and above | 5 Years – 30 Years | 8.5% – 10.4% | 675 or above | 0.25% – Rs.500000 | 1% – 2% |
| Union Bank of India Home Loan | 10.00 Lacs and above | 5 Years – 30 Years | 8.5% – 10.8% | 675 or above | 0% – Rs.15000 | 1% – 2% |
| Central Bank of India Home Loan | 10.00 Lacs and above | 5 Years – 30 Years | 8.5% – 10.4% | 700 or above | 0% – Rs.20000 | 1% – 2% |
| Bajaj Finserv Home Loan | 20.00 Lacs – 15.00 cr | 5 Years – 40 Years | 8.5% – 10% | 700 or above | 0.2% – 0.5% | 1% – 2% |
| L&T Finance Services Home Loan | 30.00 Lacs – 3.00 cr | 5 Years – 30 Years | 8.5% – 9.5% | 650 or above | 0.25% – Rs.10000 | 1% – 2% |
| IIFL Bank Home Loan | 5.00 Lacs – 50.00 Lacs | 5 Years – 25 Years | 8.9% – 14% | 650 or above | 1% – 1.25% | 1% – 2% |
- A Less Heavy Financial Load
There is no denying that younger generations have fewer financial responsibilities. You can budget, make expense reductions, and do greater things with less money. This implies that you might use the leftover money to settle your house debt. If not, you could even go a step further and build a tiny corpus to which you may add funds for a down payment on a housing loan. In this manner, you can lower the overall loan amount due and the burden of EMIs.
It will take a while to save enough money for a big down payment, which is why you need to start as soon as possible. You can accumulate enough money for eight to ten years if you begin saving for a down payment on a housing loan.
Additionally, you will still be eligible for a long loan term even if you are unable to obtain financing and make the required down payment before the age of thirty. All in all, this results in less stressful loan repayments. eight to ten years if you begin saving for a down payment on a housing loan.
- Greater Eligibility for Loans
Before approving a home loan, almost all lenders consider a borrower’s fixed obligation-to-income ratio (FOIR). Due to better eligibility for house loans, the likelihood of getting a loan is typically higher for lower FOIR ratios.
Why? A lower FOIR indicates that a smaller amount of monthly income is allocated to debt repayment and other commitments. This lowers the likelihood of defaults. Because the borrower will have more money to pay back the home loan EMIs.
In the early years of your life, your FOIR ratio is lower, if you weren’t aware of that. Because of this, you have a higher chance of getting a housing loan before the age of 30. Additionally, these might provide a larger loan amount.
- 4. Purchasing Properties that are Still under Construction
You may have to wait a couple of years before relocating to a new house. Whatever your situation is, whether you are single, just starting a career, or just married and under thirty, you can opt for this. Thus, you are also able to invest in properties that are still under construction.
An excellent suggestion: Properties that are still under construction often cost less than ones that are ready for occupancy. Additionally, at some point, you may be able to acquire an ideal home if you select a reputable builder and a nice neighborhood.
The majority of lenders offer home loans for properties that are still under construction in cash or in smaller installments. Disbursing the money at different stages during the building process. Also, some lenders even impose early payment penalties on the amount disbursed. This can greatly reduce the burden of borrowing EMIs, simplifying repayment.
- Greater Return on Investment
Because it carries less risk than other investments, real estate is among the safest. Additionally, the value of properties tends to increase over time. What is the cause of this? Well, there are other reasons why a property’s value rises, such as the property’s geographic position, inflation, demand and supply in the market, etc.
In response, real estate values increase in line with inflation, so if you buy it now, it can eventually function as a hedge. Additionally, you benefit from property in other ways. Consider rent and appreciation of value.
It’s realistic to conclude that the earlier one invests in real estate, whether it be a house or another type, the higher the likelihood that the value will increase over time. If a property is in a satisfactory spot and has all the facilities it needs, it can be appreciated by anywhere from 10% to 20% every year.
- Maximize Tax Advantages
Mortgage Interest Deduction: Tax relief for householders’ mortgage interest payments may be available, which lowers their taxable income. When interest payments are higher in the initial phases of owning a house, this tax benefit can save a significant amount of money.
Property Tax Deduction: You can deduct property taxes paid on your principal home from your taxes. This will reduce your overall tax burden and increase your take-home pay.
Bottom Line
The aforementioned information makes it clear that having a house before turning thirty offers several benefits. However, it is undeniable that a large sum of money is needed. Yes, taking out a home loan before turning thirty might facilitate debt repayment. However, obtaining a loan from a reliable lender might reduce the stress associated with loan repayment.
Having a place you feel like calling home is vital. Your store of joy, love, and laughter exists at home, along with many other things. Since a home serves as your family’s stable roof, owning one is both a desire and a need.
Purchasing a home is a big decision that takes careful planning and devotion to one’s finances. Choosing to take out a home loan is a crucial part of this plan. This requirement can be fulfilled in large part with the help of a housing loan. Thus, it’s vital to select the best housing loan provider to ensure a smooth process.