Tips To Obtain A Home Loan After Retirement

If you’ve been there, don’t that, you probably know difficult it is to obtain a home loan even for working individuals. For a retiree or a pensioner, it is very difficult to procure a home loan. The bank or the authority generally doesn’t want to lend out money to them as they almost have no steady flow of income. It is not impossible to get a home loan after retirement. Here are some tips on how to obtain a home loan after retirement.

1. Secured Loan

Apply for a secured loan, which is backed by an asset. It is easier to obtain a secured loan than an unsecured loan, thereby allowing the pensioner to avail a home loan easily.

2. Assign A Co-Applicant

Your chances of applying for a home loan increases multi-fold if you apply an earning person as a co-applicant. This can be anyone from your children, friend or spouse. You are also eligible for tax benefits this way.

3. Opt For A Good LTV Ratio

LTV stands for Loan-To-Value ratio. It is the ratio between the amount of the property financed by the bank via the home loan in comparison to the finance the borrower would have to use as down payment for the house. The lower the EMI, the better chances at obtaining the home loan for a pensioner.

4. Calculate Your EMI

Take some time to figure out how much exactly you’ll need to pay toward the home loan. This lets you estimate your monthly outflow and get you be better prepared for the repayment. General hurdles faced by individuals to obtain a home loan after retirement.

5. EMI Affordability:

Since they do not have steady income flow, it might be a slight burden on them month after month. The banks being aware of this are not in a position to give out huge amounts for the home loan. This might reduce the chances of getting the home loan for pensioners.

6. The Loan Contract:

The stretch of the home loan tenure for retirees only extends up to 75 years. This can be taxing on the individual applying for the loan as banks and financial institutions are not willing to take the risk at this point.


We would like to end this article by saying that it isn’t impossible to get a home loan for pensioners. With a little bit of careful planning you can definitely increase your chances of getting the home loan without any hassle. If you’re a resident of Chennai, you must’ve heard about The Chennai Homes. We are determined to provide affordable, beautiful and premium villas for the retired and elderly. If you’re looking to invest in a home, look no further. The Chennai Homes welcomes you with open arms!

The Chennai Homes – Aishwaryam,
Plot no: 57, East coast road,
Kottaikadu Village
Cheyyur taluk ,
Kancheepuram district – 603304
TamilNadu, India
Tel: 044 45513131
Mobile: 99419 95555, 91766-77770

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Comments (2)

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Sitalakshmi Krishnamoorthy

I want to know if we can get a home on rent. If so, what will be the rent and what will be the total expenses per month for a couple. Kindly advise



    Hello Mam. Yes we do have villas for rent starting @ Rs. 10,000/-
    For further clarifications, feel free to get in touch with us @ 99419 95555

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