Being a young buyer gave Gaurav an edge over other buyers and ensured that he had a sound financial headstart to his investment portfolio.
Today, people are happily raising 80-85 per cent of the money through home loans. And if they still don’t have enough, the rest is raised through a personal loan. For Gaurav, getting a good salary right at the start of his career was not difficult. Hence, at the age of 24, he decided to buy a house with a home loan, thus keeping his financial health in good shape. Many of us might wonder whether availing a home loan at such a young age is a wise decision. But a young borrower will be done repaying his/her debt by the time he turns44. Also, a young borrower has a higher loan eligibility. The bank offered him a good rate of interest.
The other advantage is that applying for a home loan at a young age gives one ample time to scrutinise the home loan market and choose the one that is the best for him at different time intervals. “Obtaining a home loan was not at all a difficult task, but arranging the down-payment of Rs 13 lakh was tough. Somehow, I managed it within the one-year time-frame provided by the builder.
I booked my house at the age of 24 where my savings were minimal. About 70 per cent of the down-payment was arranged through a mortgage. So far, my home loan journey is turning out to be a smooth affair and I plan to repay the complete amount within the next 10 to 12 years,” he says.