While acquiring a home loan, two factors that mainly determine the amount payable as EMI are home loan interest rate and loan tenor. Apart from these factors, there are numerous ways to reduce home loan EMI payments. Some of them are mentioned below.Bigger down paymentA down payment is an initial advance payment borne by borrowers from their own pockets while purchasing a house on credit. For home loans, generally, an amount equal to around 10% to 25% of the loan amount is needed to be paid as downpayment. The remaining home loan amount is serviced...
Wednesday, 31 March 2021
Important Documents Required for Home Loan Refinance
Many a time, individuals can suffer from sudden financial crises, making it difficult for them to sustain their current home loan repayment. Borrowers can also find themselves stuck with a high interest housing loan while current market rates have lowered. Under such circumstances, they can transfer their outstanding amount to a lender offering lower interest rates along with better offers like a top up loan. However, there are certain mandatory...
Tuesday, 30 March 2021
How to Claim tax Benefits on Home Construction Loan?
Amidst the launch of different housing loan schemes like Pradhan Mantri Awas Yojana by the Government of India, the real estate sector has witnessed substantial growth over the years. One of the key advantages that borrowers get to enjoy with availing a home loan is the tax benefits it offers. Since EMIs are ideal repayment methods for this particular loan variant, which includes paying the principal amount and interest rates, home loan tax benefit inevitably applies to both of them. According to the Income Tax Act, 1961, borrowers...
Friday, 26 March 2021
Top Factors That Badly Affect Your Home Loan Interest Rates
One of the most prominent factors deciding your home loan affordability is the interest rate. It definitely does vary across lending institutions, depending on market conditions. However, many applicants might not be aware of how these rates can be negotiated depending on their property characteristics, eligibility, and financial habits. Here are some of the top factors affecting home loan interest rates and ways in which individuals can save on...
Wednesday, 24 March 2021
Owning Multiple Home Loans? Know How to Deal Smartly
Contrary to popular belief, individuals can opt for more than one loan. In fact, there are families that might be having a car loan or home loan in India besides a personal loan. The biggest concern with multiple debts is repayment. While different financial products might offer you different benefits, they also come with varied interest rates, tenure, and other repayment conditions. Although multiple loans might cut down on your monthly disposable...
Friday, 19 March 2021
Housing Loan Rates Hiked? Know How to Deal With Them Properly!
Home loans that carry a high credit value and an extended repayment tenure is a long-term interest commitment. The credit form imposes a considerable pressure on a borrower’s financial capacity. A hike in home loan interest rates can become challenging for an individual paying EMIs, especially for a floating interest housing loan.For instance, if one avails Rs.25 lakh at a 10% interest rate for 20 years, total interest payable will be Rs.32,90,130...
Tuesday, 16 March 2021
Important tips to consider before taking a Home Loan
As per recent data, the RBI recently linked the risk weight of home loans to LTV ratio, as applicable to all new housing loan sanctioned up to March 31st, 2022. This particular facility seems quite beneficial for the real estate sector, as it is expected to generate more revenue within the next few years. Even though all these aspects have made a positive impact in the home loan segment, individuals are still required to keep certain things in mind before availing this advance. Borrowers inevitably come across a few components of housing...
Important Things to Remember While Transferring your Home Loan
Besides lower interest rates, home loan transfer also accompanies a range of benefits like better service, pre-approved offers and many more. However, to leverage the optimum advantage, individuals have to consider a few things. Here are some of them. Time of refinancingIt plays a crucial loan in determining the profitability of this facility. Generally, in the initial stages of repayment, individuals mostly service their interest liabilities....
Monday, 15 March 2021
Important Factors You Should Know Before Taking aTop-Up Loan on a Home Loan
With a top-up loan, which is usually available during home loan balance transfer, a lender extends an additional credit line over and above the existing loan amount. Such credit is usually available at an easy rate of interest. Nonetheless, there are a few important factors that borrowers should keep in mind before availing a top up loan on home loan –Conditions to avail it To be eligible for such an additional loan amount, borrowers need...
Thursday, 11 March 2021
You Should be Aware of Which Home Loan Tenure is Right for You
A home loan is a convenient financial solution for individuals looking to invest in residential property. Potential borrowers can avail up to Rs.3.5 crore under this funding solution to use for constructing or purchasing a house. Nonetheless, availing a housing loan also depends on certain factors, where tenor plays a crucial role.Factors to consider when choosing the home loan tenorMonthly incomeUnderstanding home loan EMI aids borrowers in...
Wednesday, 10 March 2021
Facts to Know About PMAY Subsidy Scheme
PMAY or Pradhan Mantri Awas Yojna is a scheme introduced by India's government to offer affordable houses to the economically weaker sections by 2022. This scheme is primarily divided into two sections - Urban and Gramin. Under PMAY urban scheme, eligible candidates are divided into three categories, namely -Economically weaker sectionLow Income Group (LIG)Middle Income Group I and II (MIG I and II)Individuals belonging to these categories can...
