How to Manage Home Loan EMIs during Your Retirement Phase?
By Anupama Deshpande | Jan 9, 2019

Everyone saves his/ her hard earned money to buy the home. But with the rising rates of the properties, most of the people need the assistance of the home loan to fulfil their dreams of owning house.

As we know that home loan is a long-term commitment for a period ranging from 5 to 30 years. However, being a secured loan, it is offered at the lowest interest rate when compared to other forms of loans. Home buying decision is an emotional decision which is seen as serving asset for many generations of your family.

It has been noticed that when people opt for home loan, they keep the repayment tenure as high as possible which usually reaches upto their retirement age or some people avail more longer term loan when they need to pay the EMIs for more 3 to 5 years after their retirement.

In such a scenario, people have to cautiously take their monthly income post retirement into consideration and estimate whether they are capable of paying remaining EMIs out of that income conveniently.

Outlined below are some useful and smart tips as to how to manage home loan EMIs during your retirement phase?

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With the increase in your salary, you can consider an upward revision of the home loan EMIs. A small increase in EMI will reduce the home loan tenure considerably.

In case the income of other family members also supports running your family expenses then also you can think of an upward increase in your home loan EMIs.

You can get your home loan refinanced from an institution who is offering you a home loan at lower interest. This will make considerable difference on your home loan EMIs.

There are occasions when you get a lump sum amount such as bonus, maturity of insurance policy, selling an asset, etc. At that time, you can prepay or part pay your home loan and reduce the tenure.

You can plan well in advance for increasing the income that you will get after your retirement. You can invest now so that you can get a stream of income to support the life after your retirement. ou can take help of retirement planner for this issue.

It is to be kept always in your mind that extending the home loan EMIs in your retirement phase can put a lot of stress on your finances if you have not made proper and advance planning for the same. If you go through above mentioned points and do the things accordingly, it will definitely help you managing Home Loan EMIs during your retirement phase.