Roti, Kapda, aur Makaan is not merely a cheesy title to a popular Hindi film. These three constitute the basis of human existence, something which every individual needs and wishes to have enough of. Now, talking about having a roof over one’s head; while everyone dreams of having one via easy home loans, the process can be easier for salaried employees than a contract-based professional. Does not having a fixed source of income totally bar you from ever owning your dream property? Let’s understand it with the help of examples.
Scenario 1: Contractual working as a novice
Consider Rohan, a hardworking and well-earning contract-based employee of an IT firm who has just graduated and finally landed his dream job. You might think that such a lad would have easy access to home loans; however, the lack of prior work experience puts him in a negative light in the lender’s sight, who may reject his loan application.
Scenario 2: Having a professional degree under the belt
Now consider a young professional named Aditya who has also just landed his first job in Chartered Accountancy on a contractual basis. Here, the scenario will be different as Aditya’s loan may be passed, that too, without being charged high home loan interest rates. This is because, given his professional degree, lenders will assume that even if his contract expires after a few months, he will be able to land another job quickly. So you see how Aditya will have it easier than Rohan?
Scenario 3: With sufficient work experience
For our third-case scenario, let’s consider an experienced web developer by the name Ritesh. Ritesh has been working in a multinational corporation on a contractual basis. However, he has a solid 7 years of experience in his field of work. Now if Ritesh were to apply for a home loan, he would have it sanctioned without any problems; however, only after the lender has assessed his creditworthiness, his work continuity, past appraisals, etc.
Scenario 4: When the matter’s about age
Finally, let us consider another experienced IT professional, Subhash. Subhash is also a hardworking and well-earning contract-based employee with substantial work experience. However, his age at the time of applying for a housing loan is over 40 years. Despite having solid work experience and earning well, the lender may end up rejecting his loan application owing to suspicions as to why he is working on a contractual basis even in his mid-40s.
In summation, to say that not having a fixed income forbids one from taking a housing loan would be incorrect. Contract-based employees can get a housing loan; however, the eligibility criteria for them are a bit more stringent when compared to salaried employees with a fixed income. Even after applying for a housing loan, it is vital to check affordability by using an online tool such as the home loan EMI calculator to be sure of one’s repayment capabilities. This will ensure a smooth repayment experience, regardless of being a salaried or contract-based employee.