Can You Get a Mortgage in Your 20s?

We get it. You’re in your 20s. By default, you are jumping around like a gazelle. Good for you.

Given that you have come to this page, however, let's get straight to the point. You need money to buy a home, and a mortgage seems to be the only solution. But you’re in your 20s. Can you even get one at this age?

The answer is yes. Well, here we can safely assume that another question would be bugging you at this point - how does one get a mortgage in their 20s?

It isn't an impossible task to achieve; all you have to do is set a goal. Whether it is related to studying abroad or wanting to buy a home, treat it as a long term goal, and prepare for it accordingly. Here, mymoneykarma has listed some points, considering which can help you in getting a mortgage:

Have a Regular Source of Income

Income is an essential factor that decides your eligibility for any loan. For instance, if your income is Rs.25000, you won't be eligible for getting a home loan of Rs.20,00,000. Your debt-to-income ratio would be abysmal.

Hence, before you think of borrowing mortgage, you must have a substantial source of income to achieve your goal.

Pay Taxes Diligently

If your income is taxable, pay the taxes on time, as the banks and other financial institutions consider Form-16 and ITRs of at least three years to approve the loan.

Build Credit at an Early Age

Your credit score can decide whether the lender should take the risk of lending you money or not. For building good credit, you need to begin credit activities at least a year before applying for a mortgage.

If you have had a student loan and paid your EMIs diligently, then you don't need to worry. However, if you don't have a credit history yet, then get a credit card to start building it. A secured credit card would be best to start out.

Keep Your Payment History Clean

Once you get a credit card, use it responsibly. Pay your bills on time and set an auto-debit facility to save yourself from paying any penalties on missed or late payments.

Save Money for Downpayment

Whether your goal is to study abroad or to buy a home before turning 30, it's vital to save money for a down payment.  

For getting an education loan of above Rs. 4,00,000, you need to make a down payment of 15% for studying abroad; whereas, in a home loan, only 80% of the amount is disbursed by the lenders.

To Sum Up

As we said earlier, getting a mortgage in your 20s to accomplish your goal isn't an impossible task if you plan for it. However, you should repay the mortgage on time to maintain your credit health and keep your achievement intact.

Need to apply for a home loan? Apply right away with mymoneykarma. We promise not only a hassle-free process, but also the best interest rates from across banks.