A home loan can be of great financial assistance in owning your dream home. It can finance up to 90% of the total purchase price, making it very easy to become a homeowner. Besides, purchasing a property is also a very significant financial decision in a person’s lifetime. It can provide a financial safety net for the future.
So, don’t wait any longer to become a homeowner. If you’re worried about financing the purchase, you should know that it has become very easy to get a home loan in India, with simple housing loan eligibility criteria and only basic paperwork. Here’s a look at five great reasons why a home loan can be a great idea to fulfill your aspiration of buying a home.
While paying house rent counts as an expenditure, buying a house is asset building. It also provides you security and a sense of accomplishment. Why spend the rent amount to build someone else’s bank account when you could pay almost the same amount as EMIs for a home loan and acquire a valuable asset?
Did you know that a home loan can actually offer you great tax benefits? Yes, under Section 80C of the Income Tax Act, you are eligible for tax deductions on loan repayments. In addition, under Section 24A, you could get a tax deduction of up to ₹2 lakhs. Also, schemes like the Pradhan Mantri Jan Dhan Yojana have made purchasing a home much more accessible for people of all income groups.
Flexibility of Repayment
In terms of repayment, these loans provide a great degree of flexibility. You are free to choose a tenure of up to 30 years when you apply for a loan from the best bank. A longer tenure means that the EMIs you pay each month will be lower than those for a shorter tenure.
Some banks offer the facility to shorten your repayment tenure in case you come into some money, such as a salary hike. So, make sure to check for prepayment terms before you apply for the loan and use an online home loan prepayment calculator to get an estimate of how much interest you can save via prepayment.
Balance Transfer Facility
This facility allows you to earn benefits on the rate of interest on your EMIs. Transferring your loan to a bank offering a lower interest rate can help you save money and reduce the burden of repayment. Here too, you can use a home loan calculator part payment to check how this would impact the amount you need to repay.
A home loan can play a very instrumental role in helping you achieve your goal. In case you can’t finance the purchase of your house upfront, it provides you with ample support and time to accomplish your dream. Some banks have also expanded their criteria to make their services accessible to a larger customer base. For instance, it has been moulded to suit the unique requirements of self-employed citizens. And don’t forget, you get great tax benefits on home loans too.