In home ownership, timing is paramount. Do it too soon, and you’re likely to put yourself in a bad financial situation. Do it too late, and you might waste many years you could have used to build home equity.
In many cases, your 30s is the Goldilocks decade of your life to apply for a mortgage to buy a house. While every person and situation is unique, here’s why anywhere between years 30 to 39 is usually the optimum time to gain a foothold in the property market:
You Are Old Enough to Manage Debts Well
Filipinos aren’t known for being financially savvy. In fact, financial literacy is a great concern; many people are struggling to save, build wealth, and buy costly assets, like a house and lot. Filipino children know how to save but not for the rainy day or the future, but rather for gadgets. Sadly, it would take a while to correct old, bad financial habits.
If you’re in your 30s and not broke like you used to before, then you’ve probably gotten smarter with your finances. This is especially true if you use your credit cards wisely, pay your utility bills on time, and still manage to set aside some of your income in the bank.
You Are Young Enough to Qualify for Mortgage’s Age Eligibility
Any Lancaster New City review on sites like South Property Review would attest that most lenders are likely to going to deny your loan application if you do it in your mid to late 40s. While you’re allowed to secure a mortgage as early as 21 years old, you might still not satisfy other criteria, such as employment and income requirements.
If you apply for a mortgage in your 30s, though, you would still be far from your retirement age before the loan matures. In other words, your prospective lender would feel more confident that you could make your monthly payments throughout its term.
You Have Few Dependents
It’s not uncommon these days for Filipinos to only start having a child in their 30s. Considering that the number of dependents is a prime factor lenders consider when making lending decisions, the fewer you have means the better.
You Have a Stable Job
Not all millennials find corporate success early. Many switch companies and change careers frequently during their 20s. When you reach your 30s, your state of employment has probably been stable for a while. Financial stability and occupation continuity are both important to secure home financing successfully.
If you’re ripe for a mortgage way before your 30s, then good for you. But if you’re like many Filipinos, celebrating your 30th birthday could be a sign that you’re ready to handle what it takes to be a homeowner—and mortgage borrower.