Is this right time to get your Home Loan?
You may have enough money for all the needs. But, when it comes to meeting the goals, both real and imaginary, many of us are left with a little option of borrowing the amount required. This yawning gap between the reality and aspirations should be no more a worry for you. Because today the interest rates are on a downward slump and it’s the right time for you to save lots of money and get the home of your dreams faster.
In most of the cases, housing finance companies requests borrower to pay at least 10 to 20% of the total value of the property for the home loan approval.
Some other factors that influence the home buying decision include interest rate, eligibility norms and charges like processing charges, legal fees, etc.
Nonetheless, owing to various options, acquiring the finances to buy a home has become much easier than ever. Even the government has launched Pradhan Mantri Awas Yojana (PMAY) while stating its objective of providing ‘Housing for All by 2022’.
Recently, Reserve Bank of India cut the repo rate from 6.25% to 6%, which is lowest in almost 7 years. And the experts suggest that this reduction in rate offers a conducive borrowing environment.
Here are some home loan benefits that you should consider:
1. The people who have income less than Rs 20 lakhs can benefit from PMAY. It provides benefit from various interest subvention, credit and tax relief schemes, thus making it easier for first time home buyers to get the home in a fastest and cheapest way.
2. Many banks and NBFC’s are also committed to providing mortgages for buying affordable homes. This also includes prospective buyers who may not have a strong credit history or substantial proof of income to support such house purchase.
3. The real estate market has witnessed a slowdown after demonetization and the implementation of the Goods and Services Tax (GST). So, home loans were the big source of revenue for the banking industry as if they are now trying to revive growth through attractive loan schemes for home buyers.
For example, IDBI bank is offering a home loan with the lowest EMI of Rs 758 per lakh. The minimum tenure to avail this offer is 30 years. Whereas Axis Bank waives off 12 EMIs if all other EMIs have been paid regularly. There are no prepayment charges and other added benefits without any extra costs are also provided.
Factors to consider when applying for a house loan
If you are considering a home loan under a special scheme, compare it with regular home loans and analyze the pros and cons both can deliver over the long term. Some special schemes may be alluring for the short term. But, you need to assess its long-term impact, as home loans are usually required for over 10 years tenure.
“Babu Sivaprakasam, the partner, head banking, and finance, real estate, Economic Laws Practice suggests, “If you want to know the maximum loan amount, you’ve to identify the approximate eligibility amount from a bank. It is recommended to check whether registration charges, stamp duty, GST, etc., will be included in the total loan cost. The home buyer will have to bear payments after possession as well. These payments mainly include common maintenance charges, clubhouse charges, etc.,”
Presently, home loans interest rates are at their lowest and several banks have waived the processing charges. According to experts, interest rates are unlikely to rise above the current levels, for at least three years. As developers are keener than ever to offload their inventory and adhere to the Real Estate (Regulation and Development) Act’s rules, it is the right time for home seekers to apply for home loans and buy their dream home, with attractive offers from both the banks and developers.
For any information regarding home loans, you may call Green Lotus Apartments at 9569111222