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Key Factors That Affect Loan against Property Tenure

LAPIt is a sense of accomplishment when you can build your secured nest to your family by owning a home. An undeniable fact is that every common man in the developing countries like India looks for the help of the home loan to own a dream home. There are many financial lenders in the country to offer the help for the same but, you should be very careful in choosing the tenure of the home loan which otherwise will end up in default the loan that will end up in losing your dream. Choosing the right loan tenure is one of the important factors that affects successful payment of the home loan. Now, let us consider few important aspects that influence the tenure of the home loan.

Factors Affecting Home Loan Tenure

Amount of loan

When you take a home loan to purchase one, you are indirectly pledging the purchased home to obtain finance to purchase same so, you should be very careful in deciding the loan amount that you are going to withdraw for a loan.  Make maximum down payment for the home to keep the loan amount short. Take a loan amount in such a way that your home loan EMI does not exceed 40% of your monthly income.


EMI equated monthly instalment is another big factor that influences home loan tenure. If you keep your home loan EMI low, you may have to go with the long tenure. At the same time, paying EMIs will keep your loan tenure short and close your loan faster. However, you should make sure that there is a right balance between your monthly income and EMI chosen.

 Interest rates

Home loans are offered at two types of interest rates, one is fixed and the other is floating. Most of the banks today are offering hybrid home loans where the interest rate on the house loan remains fixed for a specific tenure and later it jumps to floating. While fixed rate of interest has nothing to do with the house loan tenure, floating rate of interest keeps changing according to the market fluctuations.  You should take these floating rate of interest on the home loans into consideration while choosing the home loan tenure.


Last but not the least is the age which is another important factor that influences tenure of the home loan. it also plays a key role in deciding your eligibility for a home loan. As per the norms of the lender-borrower should complete the loan tenure by the time he reaches the age of retirement. Older you grow, less are the chances of enjoying extended loan tenure on the home loan. Lenders may give special consideration to the borrower and approve the eligibility only when they can showcase regular source of income to repay the loan even at that point


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