Owning a house is a significant accomplishment and a dream come true. It requires time, effort, money, and careful financial planning to design a space that accurately expresses your personality and satisfies your demands. Hence, several banks assist you in financing your ideal home with appealing Home Loans along with low processing costs.
Types of Home Loans
Regular Home Loans
A Home Loan is the most common Loan used to buy a house. Housing finance firms and public and private banks offer them at affordable rates. You can borrow money to buy your dream home and repay them over time in monthly instalments.
Home Improvement Loans
Your home's interior design reflects your personality and aesthetic preferences. As a result, you should take all possible steps to realise your goal. You can rely on Home Improvement Loans for renovations, both inside and outside.
Balance Transfer
You can enjoy all the benefits by transferring your mortgage to a bank that offers better rates. The Home Loan Balance Transfer is possible through a bank that provides a user-friendly digital approach.
Home Extension Loan
Banks offer house financing to expand and meet your current residence needs. This Loan allows you to make extra space with easy financing, whether a play area for your kids, a workspace, or a reading space. You can also apply for Top-Up Plans at the lowest Home Loan Interest Rate.
Maximum Home Loan amount
You might receive 75% to 90% of the total cost of the property when you apply for a Home Loan. Similarly, around 75% to 90% of the construction, improvement, or extension estimate can be paid if the Home Loan is for new buildings, home improvement, or extensions. Your down payment makes up the remaining 10% to 25%, depending on the Loan amount.
Factors affecting Home Loan eligibility
Your ability to repay the Loan is the major determinant of qualifying for the Loan. Other important considerations include your age, qualification, spouse's income, number of dependents, assets and liabilities, savings history, and job stability.
Do Home Loans offer tax benefits?
You are eligible for several tax incentives under the Tax Act of 1961 if you apply for Home Loan. You are eligible for a deduction of Rs 1.5 lakh under Section 80C for principal payments. Several tax-saving provisions are applicable under specific guidelines established by the act.
Now that you know what Home Loans are, make sure you have a sufficient budget to apply for one.
