Most of us with a good CIBIL score and a great credit history will be eligible for a home loan by the bank. But the amount we are entitled to depends on our income and capacity to pay. Usually we are entitled to a loan amount of 60 times our monthly income, but this varies from bank to bank. All of us want a posh flat in an upmarket area, don’t we? What if our dream flat doesn’t fit in the loan amount sanctioned by the bank?
5 strong tips to increase your home loan eligibility that will definitely help you buy your dream flat: –
1). Clear your previous loans: Before you seek a home loan from the bank, make sure you have cleared all your previous loans you had taken to fulfill your fantasies. The banks see this as a reason to reduce the loan amount you are entitled too. After clearing your loan, make sure it is updated in your CIBIL credit score.
2). Variable Pay: Make sure to include all your perks and bonuses while calculating your income. The banks take this into consideration while calculating your home loan eligibility. This will help you in receiving a bigger loan from the bank.
3). Rental Income: Do you have any property elsewhere which is kept idle? Rent it out immediately. The rent received on the property can be included in your income and this in turn will increase the home loan amount you are eligible for.
4). Increase your tenure: When you increase the tenure of your loan, your eligibility increases, considering the fact that you have a lot more time to repay the bank. But remember the maximum tenure cannot exceed 25 years.
5). Joint earnings: If your spouse is also an earning member of the family, then you should ideally opt for a joint loan. This increases the home loan amount you are eligible for because now the income of you and your spouse will be considered together. This also means that the liability of repaying the loan is on both of you.
A few quick tricks that will surely get you a bigger loan, big enough to fulfill your dreams.