Know About all your Options Regarding Buying a New Lome in 2021
According to the Union Budget 2021, first-time homebuyers from low and middle-income groups can benefit from reduced interest rates on home loans under affordable housing schemes. They can also enjoy an income tax deduction of Rs.1.5 lakh upon fulfilment of certain conditions. Therefore, an increase in demand for affordable housing is likely to continue throughout 2021.
An individual looking for the affordable home loan rates with other cost-effective benefits will find 2021 to be the best year to buy a property.
Thus, on meeting home loan eligibility and fulfilling other requisites, one can proceed to apply for an advance.
Nonetheless, a borrower should keep track of certain factors before buying a new home in 2021.
Options to consider while availing a home loan
- Choosing the right lender
Various lenders offer a set of benefits for the borrowers, depending on specific factors. A borrower should conduct thorough research and compare lenders to optimise the advantages. It is advisable to analyse the requirements first and then apply for a home loan.
2. Considering eligibility criteria before the loan application
Borrowers should check their eligibility criteria using a home loan eligibility calculator before applying for a loan. As the requirements vary across lenders, it is pertinent to learn about the necessary factors for a home loan first and then initiate the application. The chances of loan rejection decrease if the eligibility is checked beforehand.
3. Documentation procedure
Even though the online home loan procedure does not require heavy paperwork, homebuyers should keep some primary documents ready before applying. These documents include identity proof, residential proof, bank account statements, and passport and property documents.
4. Checking home loan rates
With a lower home loan interest rate, an individual has to pay reduced EMIs throughout his/her home loan tenor. Therefore, it is crucial to effectively compare interest rates and settle for the lowest one to reduce the financial burden. Moreover, one can calculate EMIs using a home loan EMI calculator and plan the future expenses and repayment to avoid financial strain.
5. Clarification of repayment terms
Borrowers should check the repayment and prepayment terms across lenders for convenience in the loan repayment process. One should settle for the lender who levies no charges on part paying or foreclosing the loan.
One can easily avail a home loan in India this year by keeping the above factors in consideration.
Reasons to buy a house this year
There are several reasons why this year is the perfect time to buy a dream house. Few of these are explained below —
— Home loan rates under RERA
Under the Real Estate Regulatory and Development Act, homebuyers can enjoy perks and benefits concerning shielding home loan rates, solving buyer’s grievances and more.
— Lower interest rate
Financial lenders are offering home loans at lower interest rates since they can acquire funds from the Reserve Bank of India at low rates. Therefore, this is an ideal opportunity for homebuyers to invest in houses. Due to a dip in interest rates, an individual has to service lower EMIs.
— Government schemes
Schemes like Pradhan Mantri Awas Yojana offers interest subsidies of up to 6.5% on home loans. This government scheme sets eligibility requirements as per income slabs and promises affordable housing for both the urban and rural community. Therefore, it is advisable to secure home loans from an institution offering the benefits of this scheme.
Read Also: Home loan: Apply for Housing at a Very Low Interest Rate in India
Reputed financial institutions are also extending pre-approved loan offers to facilitate a seamless loan application process. These offers are available on various financial products, including home loans, loans against property, etc. You can check your pre-approved offer by submitting your name and contact number.
Thus, with lower home loan rates and accelerated benefits, purchasing a house has become significantly easier. Further, with the easy availability of government schemes, it is evident that the real estate market will notice appreciable growth in the coming years.