Buying a Home: Why it’s Gotten Harder for Younger Generations
Eastern Eye Staff
The young generation who want to buy new homes in the current era are millennials. Most millennials have found it easier to live at home with their parents as they find it hard to finance their own accommodation. Even with relatively low home loan interest rates, the younger lot seeks to remain with parents. The lockdowns of the past year and more have not done anything to boost confidence, and with quite a few young people unemployed, buying a home is the last thing on their minds. Moreover, young people looking for home loans have to meet eligibility criteria. This may not be a cakewalk for them.
What is the Eligibility Criteria for a Home Loan?
Many banks and NBFCs offer home loans at attractive interest rates that you can easily find online. You can also find a home loan eligibility calculator online, and this helps you to know if you fulfil criteria to avail a loan. Here are the criteria you need to fulfil to avail a home loan:
- Age – You have to be between 23 and 65 years of age
- Income – You can be self-employed or have work experience for at least 3 years
- Credit Profile – You must have a credit score of at least 750, and this determines your ability to repay the loan.
- Nationality – You must be an Indian citizen
Why Buying a Home is Not an Option for Younger Generations
As you can see, based on the criteria, millennials may find it hard to take a loan. Let’s elaborate on the reasons why younger generations find buying a home difficult:
- Hard to Take Loans – Several individuals who fall in the category of ‘younger generation’, have to think of a loan to buy a new home. Taking a home loan may not be an option as the younger generation may not meet eligibility criteria. Individuals may not have worked enough to have experience and this shows instability in income. Furthermore, obtaining a credit score that lenders want may be a challenge for a young person just a few years into employment/business.
- Economic Climate – Currently, and for the past few years, the economic climate has not been conducive to employment for many youngsters. As a result, most live at home with parents and feel this is a safe financial zone. Moreover, with lockdowns seeing many people out of jobs, buying a home is the furthest from any young person’s mind.
- High Rentals – Many millennials, due to employment requirements, have to work in cities far from their homes. Hence, they tend to rent spaces. With high rentals, millennials find that they consume a lot of their income on rent and other expenses that demand a certain lifestyle they are used to. Therefore, they find it difficult to invest in a new home.
- Delay in Marriage – Most millennials delay marriage into their thirties, whereas younger generations desired settling down much before that. Since the mindset of millennials has changed from earlier generations, attitudes towards wealth and saving have altered too.
Get a Home Loan Easily
With the current scenario being a buyer’s market, you can get a home loan easily online. Furthermore, you can use a home loan eligibility calculator to see if you qualify to take a loan.