The real estate field has been witnessing a significant hike in property rates in the past decade. As the property rates increased by 30% in some metro cities, your dream of your own home might just remain a dream.
If that’s a thought that has crossed your mind, worry not. Opt for a home loan and fulfil your dream of owning your dream home.
Home Loans tend to bridge the gap between your savings and the amount needed to buy your dream home. With lower interest rates, ease-of-process, and longer tenure, purchasing your dream home will not be far-fetched anymore, even with the increasing real estate prices.
But, that’s not it. Home loans come with tons of benefits. Apart from helping you buy your dream home, this loan also offers the following:
- Property due diligence:
Before sanctioning a mortgage, bank or financial institute go through the paperwork of the project you’re booking your house in. This way, the bank makes sure that the property and the project are legal and free from any disputes. Property diligence is a formal process and performs a thorough inspection of the property and the builder as well. This works in your favor, as you are ensured that you’re investing in the right project. It also saves you legal troubles or hassles of checking the property background all by yourself.
- Increased credit eligibility:
Once you’re well into paying your home loan and get the complete ownership of your property, in case the need arises, you can also apply for a loan against your property. The size of your assets (your home) plays a huge role in the eligibility of getting a mortgage loan. Thus, whenever you wish to apply for the loan against property,you being the owner of the property will make the loan process easier for you.
- Tax benefits:
The third significant benefit of home loan is a tax benefit. Under the Income Tax Act Section 80C the principal amount up to Rs.1.5 lakhs are deducted from your taxable limit. If your spouse is co-applicant in the loan process, you both are separately eligible for the tax benefits. This means double home loan tax savings! However, you can claim this tax benefit only if you’re living in the home.
Home loans not only make owning a possible, but also help you with your future debts against the property. The tax benefit is an added advantage you get by opting for this loan. Repaying your monthly installments on time will helps improve your credit score. This score will invariably help in the loan eligibility and process, should you apply for a loan in the future.