Saturday, December 10

Planning to avail a Home Loan after Retirement? Increase your Chances of Approval

The dream of living in your own house is always pricier than any other dream. However, arranging funds to purchase a home can be challenging, especially when you have got retired.

A housing loan can ease your challenge by providing you with the money required to purchase or construct a house. However, if the data provided by home loan eligibility calculators is any indication, the higher you get towards 70, which is the maximum age limit for loan repayment, the more difficult the chances of loan approval become.

But, if you are incredibly serious about your housing dreams, nothing can stop you from achieving your goals. Read on to discover the top-4 things you can do to increase the chances of housing loan approval.

However, before we move any further, you should know that the eligibility criteria vary widely among lenders. Hence, you must use a home loan eligibility calculator to get the latest information before applying for a loan.         

Tip 1 – Apply For a Joint Housing Loan

An excellent way to increase your housing loan eligibility is by opting for a joint loan. When you rope in someone who is younger and has a stable income, the lender clubs the eligibility of both applicants and calculates the loan amount and interest rates. Furthermore, if you apply for a housing loan with a woman applicant, the lender may offer additional discounts and special interest rates to you. 

Hence, availing of a joint housing loan is one of the best ways to beat the home loan eligibility calculator.  

Tip 2 – A High Credit Score Can Increase The Odds in Your Favour

Most lenders stipulate a credit score of 750 and above to approve a housing loan. However, there is no guarantee that the same rule will apply to you. Hence, to increase the chances of loan approval, you should aspire for a credit score above 800. A high credit score proves that you can handle your financial liabilities quite well and will never default on the loan.

Hence, a high credit score can increase the odds of housing loan approval.

Tip 3 – Reduce Your Loan-to-Value Ratio

When you apply for a housing loan, the lender evaluates your financial profile and informs you of the loan amount you are eligible for. You may also use a home loan eligibility calculator for getting the same information. Usually, reputable lenders like PNB Housing approve up to 90% of the house’s market value as a loan, and the rest 10% you need to pay as the down payment amount. However, if you want to increase your home loan eligibility, you should reduce the loan amount and increase the down payment.

Increasing the down payment has two advantages. First, it lowers your net EMIs. Second, it makes your profile more attractive to the lender.

Tip 4 – Make Use of a Home Loan Eligibility Calculator

A home loan eligibility calculator can help you to calculate your eligibility, evaluate your repayment capability, and apply for the right loan amount. If you apply for a loan amount higher than what your financial capacity permits you, the chances of rejection will be higher.

Hence, a home loan eligibility calculator will give you the most accurate information about the loan amount and put you on a better level to negotiate the terms. 


A housing loan can provide you with the cash required to purchase a house. By following the steps mentioned in this article, you can ensure the approval of a housing loan.