India witnessed a marginal year-on-year decline of 0.5% in the rates of residential properties between May and June in 2021. So, now is the time to buy your dream home before prices start rising. For that, consider buying a home loan. A house loan calculator can let you know how much to repay monthly based on the borrowed amount, repayment tenure and interest rate. Here, this guide will help you know the 5 top reasons to get a home loan today.
A Cost-Effective Borrowing Tool
A house loan is a highly affordable borrowing tool to finance the purchase of a property. With floating interest rates, there is no prepayment penalty on this loan.
Choose the best bank for a home loan. It must compare the current home loan interest rates in the industry and offer low rates. Maintain a good repayment history of loans and credit card bills to build a high CIBIL score, preferably between 700 and 900. This can improve your eligibility to enjoy low-interest rates.
No More Renting
You can save on rent by taking a home loan. When you pay rent, you don’t pay for something that you own. That makes it a kind of economic loss. Moreover, you may experience annual rent hikes, usually higher than inflation and unpredictable. So, instead of paying an increasing rent, how about paying a specific amount of EMI every month? Visit the official website of the best bank for a home loan. Then use the house loan EMI calculator to check the EMI payable as per the chosen loan amount, repayment tenure, and interest rate.
Become a Homeowner
A home loan can help you be a homeowner. How soon? Once you repay the loan! Want to pay little by little as per your capacity? The best bank offers a long tenure of up to 30 years to repay a home loan. The longer the repayment period, the lesser is the EMI amount! At the end of your tenure, you’ll have built a long-term asset for the security of yourself and your family members.
Enjoy Tax Benefits
The best part of getting a home loan is enjoying tax benefits under the Income Tax Act. Section 24 permits you to claim the interesting part of your EMIs paid in a year as a deduction from your annual income up to 2 lakh INR at most. You can also claim the deduction in this respect during the pre-construction period. Besides, you can claim the principal part of the EMIs paid in a year as a deduction up to 1.5 lakh INR, under Section 80C. Moreover, deductions for registration charges and stamp duty can be included.
Due Diligence of Property by the Bank
The lending bank will exercise thorough due diligence before it finances a project. For that, it will verify the project documents, their legal clearances, and titles before approving a home loan. Thus, you get to know whether the project is legally approved.
Better not drain all your funds at once and find the best bank for a home loan. With easy EMI payments, there’ll be no liquidity crunch.