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Reasons to get a home loan in 2022

In India, the real estate market is now undergoing a fundamental transformation. The real estate sector in the nation has remained relatively static following the adoption of demonetization, the Real Estate (Regulation and Development) Act, 2016, and the Goods and Services Tax (GST). Even though these reforms will have a significant positive impact on the sector, they must first overcome several time-consuming obstacles. One of the reasons why developers and lenders have lowered their rates is to attract potential purchasers and revitalize the Indian housing market. In fact, there is no better moment than now to purchase a home in India from an investment standpoint. Take our word for it, but don’t believe us. In this post, we’ll look at some of the most compelling reasons to buy a home in India in 2022.

The cost of a home loan has decreased.

In order to grow their house loan portfolio, some of India’s biggest financial institutions have lowered their home loan interest rates in recent months. State-owned banks including the State Bank of India and the Bank of Baroda lowered their marginal cost of funds-based lending rate (MCLR), thus lowering the interest rate to 8.30 percent. Private lenders followed suit and lowered their house loan lending rates as well. Many analysts now predict that interest rates will continue to increase from here. Private banks such as Axis Bank, Yes Bank, and IndusInd Bank have already raised their MCLR by 5-10 basis points, signaling a shift in the rate cycle. Furthermore, when the real estate market begins to stabilize in the following months, prices are expected to grow. As a result, now is the best time to get into the market and secure a low-interest house loan before rates rise.

Pradhan Mantri Awas Yojana Implementation

Pradhan The Mantri Awas Yojana (PMAY) is an Indian government-sponsored affordable housing program. This project will give inexpensive housing to the country’s urban poor, including those from the Economically Weaker Sections (EWS), Lower Income Groups (LIG), and Middle Income Groups (MIG) (MIG). Candidates who meet the required criteria will be eligible for grants and subsidies from the federal government, according to the initiative’s numerous components. The Credit Linked Subsidy Scheme is one of the components that has proven to be highly popular among the public (CLSS). If the qualifications are met, a rebate on house loan interest up to Rs.2.67 lakh can be obtained through this plan. Furthermore, with the Union Budget 2018-19 just around the road, several industry titans anticipate that further monies would be granted to the Housing for All initiative.

Home Loan Tax Advantages

Aside from paying for your ideal home, one of the nicest things about getting a home loan is that you may deduct a portion of the EMI you pay. An EMI is made up of two parts: principal and interest, as you may know. According to Section 80C of the Income Tax Act of 1961, the amount paid toward the repayment of the principal amount of the house loan is eligible for a tax deduction, with a maximum claim of Rs.1,50,000. Similarly, Section 24 of the Act addresses the tax advantage on the interest component of the EMI for a house loan. For the same, the maximum tax deduction is Rs.2 lakh. Tax deductions are also available for stamp duty and registration costs. Furthermore, under Section 80EE of the Act, first-time homeowners can deduct an extra Rs.50,000.

The Real Estate (Regulation and Development) Act of 2016 

The Real Estate Act of 2016 was introduced to solve this issue while also boosting transparency in the real estate business. Buyers and developers must now register their current and future projects, including layout, plan, and other pertinent information. If you don’t follow the rules, you’ll have to pay a lot of money. RERA also has the capability of serving as a mediator in disputes between builders and buyers.

The Feeling of Safety

Paying your monthly EMI on your house loan may appear to be a financial strain, but it is a commitment that is well worth keeping. After all of your hardships and sacrifices, you finally have a place that you can genuinely call home. It is a tangibly valuable item that will only improve in value with time. In the event that you want cash, you might take out a loan against your home. In fact, no other investment is likely to provide you with the same level of returns as buying a home. As a result, property investment is something you should think about at least once in your life. It will need extensive financial preparation. Currently, interest rates are low, and RERA protects the interests of consumers. If you find yourself in a position to take out a house loan, now is the year to take action

Many experts now believe interest rates will rise further from here, indicating a change in the rate cycle. Before interest rates rise, now is the best time to get a home loan at low-interest. Buyers and developers must register their current and future projects and supply all pertinent information, such as the layout, plan, and other details. Fines will be imposed if you do not follow the rules.