The benefits of applying for a home loan in present times

Benefits of Applying for a Home Loan

Comfort, joy, pride, and family time are all associated with the word “home.” Every homeowner will tell you that her house gives her a feeling of self-identity and that it is the one asset she would never swap for anything in the world. Now is a wonderful time to start planning your house purchase if you want to feel a sense of ownership, pride, and delight. It doesn’t have to be expensive to become a homeowner. You may apply for a house loan to make your goal of buying a home a reality. There are various benefits of a home loan, including tax savings on interest paid and loan amount returned. Apply now to become a homeowner rather than later; the house loan provider will aid you in evaluating the builder’s reputation and track record, as well as the legal paperwork connected to the structure.

Low property prices

In the cheap housing market, purchasers now have a variety of possibilities. For a house buyer, this offers two benefits: on one hand, she can afford a larger home, and on the other, she can acquire a home for less than she had anticipated. On the other hand, she may take advantage of additional advantages of purchasing a property with a home loan, such as tax advantages, putting a small down payment, and utilizing a home loan to cover the remainder and a loan payback term of up to 30 years.

Cut GST rates on home purchases

The GST (Goods and Services Tax) rates on home purchases have been drastically reduced. Currently, the GST rate on residential property purchases is 5% (1% for affordable homes) without the advantage of an input tax credit (ITC). Buying a property now will allow you to take advantage of these cheap rates.

Low-interest rates

With interest rates having recently fallen, home loans have become relatively reasonable. Cheaper interest rates translate to lower EMIs, making home loans more appealing and accessible.

Benefits from taxes

This is yet another important advantage of taking out a house loan. If you used a mortgage to secure a loan, you may be able to deduct both the principle and the interest portion of the repayment. You can claim a deduction under Section 80C for the repayment of the main component of your house loan. The highest amount that can be deducted in this case is Rs. 1.5 lakhs. You can claim a deduction under Section 24B for the interest component of the repayment. In terms of determining your overall yearly tax due, these deductions might be significant. You will miss out on these tax benefits on home loans if you buy a property without taking out a loan.

The main benefit of a home loan is that you may become a homeowner right away rather than waiting to save up enough money to buy a house. In addition, depending on your loan eligibility and the house loan provider’s other rules, your home loan payback period might last up to 30 years (the longer your loan tenure, the lower is the EMI amount). This provides you the convenience of making payments over time without placing a strain on your budget.

The home-buying renaissance may be short-lived. COVID-19 has helped individuals recognize the necessity of possessing a safe house, according to a recent S&P Global Market Intelligence Report, and as a result, demand for homes has increased. According to the same research, the total number of residences on the market has decreased from 700,000 in 2014 to fewer than 4.5 lakh in 2021. As a result, prices are projected to rise gradually in the near future. Reduced pollution, lower transportation expenses, less walking to and from markets, being closer to friends and family, and even lower pollution are all advantages of living in a desirable area. So, if you want to acquire a property at an affordable price, you need to start hunting for the necessary funds today!