Buying a home is one of the biggest financial investments a person can make in their lifetime and can therefore be called as an accomplishment.
Benefits in interest rate compared to olden days– In the 1990’s, banks were charging up to 18% interest on loans. Today, you can get a home loan at 8.90% annually. The decrease in the interest rates with capital appreciation makes it a dual benefit plan.
Capital appreciation– Land is always an appreciating asset in most cases. Construction costs also have also increased over the years. Rents are getting more expensive with inflation, investing in your own house can protect you from inflation.
Tax benefits- The Government has played the biggest role in the growth of home loan sector. As per Section 24B of the Income Tax Act 1961, you get a deduction of 2,00,000 towards repayment of interest towards loans taken for purchase/construction of house (if you or your family is living in the same house). At the same time, Section 80CC read with Section 80CCE of the Income Tax Act 1961 allows for a tax deduction up to 150000 Lakhs on repayment of principal amount of the home loan. This is one of the biggest incentives for people to go for a home loan, even if you are able to buy your house with your life savings. Applying for a Home Loan may seem like a herculean task and information on Home Loan offers can be confusing as each bank will have its own Home Loan rates and scheme. It can become difficult for a person to compare the bank rates and offers and make an informed decision.
We can help you with the procure and all the information at a single place where you can compare the rates of different banks on a single screen. In addition, we can help you get the best deal depending on your income, demographics,and repaying capacity.