Home is more than a roof that covers the head and four walls that protect against unwarranted elements. A home is not just a structure made of bricks and beams. It is also a place where dreams and hopes are realized. Everyone wants to be able to call this their safe place.
This is what you want. Are you looking for a larger space or some relief from your landlord? Are you unable to achieve your long-held dreams because of a lack in funds? No matter what reason you have, you can apply for a loan to help you become a homeowner today.
Let’s take a look at the top ten advantages of obtaining a home loan.
- You can call it your own!
You will feel accomplished when you repay your home loan on time. It also provides you with a safe place where you can live comfortably and securely with your family.
- Tax Benefits
Housing VA Loan are eligible for tax subsidy from the Government of India. A person can get a tax rebate up to Rs. 1.5 lakhs for Section 80C and Rs. 2 lakhs for section 24B. For homes in construction, these deductions are not applicable.
- Credit score improvement
Regularly paying your EMIs off improves your credit score and your eligibility for a home loan on a second property, if you decide to ever purchase it. You can also get medical loans and education loans if you have a good track record in home loan prepayment.
- Low Interest Rates
Fixed and floating interest rates are available for home loans with long terms. If you have floating home loan interest rate, you are most likely to benefit from falling ROIs during your cycle.
- Appreciating Asset
Property is an asset that appreciates in value. A home loan allows you to purchase a property that will appreciate in value over time. Residential real estate is still a lucrative investment because India is growing rapidly and there are more Indians looking to buy homes.
- Remain Liquid
It is wiser and better to have liquid money with you than not. The unpredictable nature of life can throw off our plans. You might find yourself in a liquidity crisis if you spend all of your existing funds to purchase a home. You can keep your liquid assets in place by taking out home loans. However, you will only pay a portion of your income through EMIs.
- Rent Relief
You are probably familiar with the problems of renting if you live on rent. A home loan is a great option if you don’t need to move around often. You will have the freedom to decorate and live in your home as you like, while also allowing you to leave enough space for your children to have their own space.
- Refinancing Facility
If you are looking for housing finance, you may be able to transfer your loan to another lender if they offer a lower ROI. You can Refinance your loan with another lender if you are unhappy with your current ROI or have poor customer service.
- Lending Institutions Must Perform Due Diligence on Property
Only after they have reviewed your application, documents, and property, will lenders approve you for a home loan. This will be a huge advantage to you, as it lowers your risk of financial repercussions. An approved project is more secure than one that has not been approved.
- Long Repayment Tenure
Only home loans allow for a repayment term of up to thirty years. You can also extend the term to reduce your EMIs. To see how your EMI will change due to a change in tenure, you can use an easy online tool like the home loan EMI calculation.