home loan tips 2019

We are housing finance company that cares about the housing dreams of informal income spectrum. You aspire for a house and we help you to build your dream castle. National Housing Bank approved; IFL Housing Finance is amongst the first organizations in India to claim disbursal in 3 days. The epicenter of our firm lies in helping people across all over India to give shape to their dreams in the form of houses. Turning dreams into reality.

Everyone desires for a home of their own. Now, whether be it a big or a small owning a home for oneself is somewhat every single person’s dream. In the times of sky-touching prices of properties, buying a home becomes a difficult task. Henceforth, many people do reach out for getting home loans either from private or governmental banks or from non banking financial companies (or NBFCs). These institutions do help people in getting their own home with an ease. In case, you want to take home loans, then you can opt for IFL Housing Finance where you can get various types of home loans at minimal interest rates.

However, here arises one question that whether it is important to take home loans for buying homes even if we have enough finance?

Benefits of purchasing home of own funds

Benefits of purchasing home of own funds

Is it okay to get a home out of hard earned money or taking housing finance loans will be better? This question has affected many people from a long ago. However, there are both advantages as well as disadvantages that are related in buying home from own funds. There are many reasons when people opt for purchasing their property with their hard-earned money. For instance, they need less overall cost of buying a property as one would have to pay only for the actual value of the property and not the interesting portion of home loans that remains attached along with it all the time. Plus, they don’t need to take additional financial burden after availing loans and many more.

Disadvantages of home loans

Disadvantages of home loans

There is one of the biggest drawback of opting for home loans is it increases overall cost of the property because of interest liability that is associated with home loans. For an instance, if a person takes loan for buying his home, he ends up paying almost double of the property by the end of his 20 years of tenure.

Apart from this one, amount of repayment of the home loans becomes a burden over the borrowers for the upcoming tenure of 20 years. A person has to make sure that he pays EMI on time throughout the whole tenure without even a single bounce lest the credit health won’t affect.

Benefits of reaching out for home loans

There are also numerous people who are willing to get their homes with the help of home loans. There are various benefits of home loans that include tax benefits, enhanced eligibility and thus obviously a better living conditions. Also, above of all, your hard-earned savings are kept safe which can be further used for other investment opportunities that can reward you in a much better way.

Tax Benefits

Tax Benefits

Getting a home loan with the help of a bank or NBFC entities allows numerous tax benefits. For an instance, a borrower can even claim for deduction of up to 2 lakh under the Section 80C of Income Tax Act. Apart from this, under the Section 24, borrowers can further claim for a deduction of up to 2.5 lakh over the interest rates as paid on the home loans. Such benefits offer home loans as a much better option for home loans that enables borrowers as a tax saving elements.

Improved Credit Worthiness

Improved Credit Worthiness

There is a great advantage that is being offered to all those borrowers who pay EMIs timely for a long time during their tenure. And that is they get a benefit of boosting up their credit score. The better will be the credit score, the much better as well as more chances for a person of getting approved for various kinds of financing with banks or NBFCs. It is always advised to keep a higher credit score and this is because a bank judges a person by the credit score of the borrower.

No lock-down of funds:

Investment of savings in real estate is said to be most risky condition if seen from the perspective of investment’s decision, as it lock down a huge amount of hard-earned money. Unlike other investment opportunities, such an investment also has many risks that are attached with it. Specifically the current trends of real estate markets states that one must avoid investments in real estates. This sum of money can instead be invested in more stable investment tools that could even ensure better returns.

Pre-Payment/ Part-pre-payment:

A person can opt for making prepayments of EMI in case he has taken loan from banks or NBFCs and got a time of 20 years for its repayment. It helps a borrower to lower down the time period of the tenure of repayments and subsequently decrease rate of payable interest for home loans.

Enhanced affordability and improved livability:

Affordability and livability are two of the most amazing factors that attract people towards opting for home loans. People these days have blind trust over home loans just because of these reasons. A home loan makes a home affordable which might seems to a borrower as unaffordable.

Balance transfer facility

Balance transfer facility

There is a facility of balance transfer in case of home loans if different bank is offering loans at a lower interest rate. This facility allows a person to shift the burden of interest rates from one to another option.

I hope this article was useful enough for all those who desire to own their dream home in a more lavish style. However, they can also opt for the home loans offered by IFL Housing Finance as we have a variety of home loans to choose from.

Leave a Reply

Your email address will not be published. Required fields are marked *