With the restrictions and lockdowns disrupting everyday life, many people have felt the importance of living comfortably in a space they can call their own. Consequently, there has been an increased interest in apartments in Chennai, especially among first-time home buyers.
Buying a home is a lifetime of financial commitment for most, and it needs to be approached with care. Most need to apply for a home loan, and from the outside, it seems to be a difficult process. It requires careful deliberation and comparisons while ensuring you have all the necessary documentation to avail one. But rest assured, we are here to tell you why now is the best time to avail of a home loan to invest in your dream property.
Reduced Interest Rates:
Many national banks are coming forward with reduced interest rates on home loans. The interest rate is usually the deciding factor when we compare home loan options from different banks. High-interest rates have been a deterrent to the dreams of people, but right now, the interest rates have come down considerably. Lower interest rates allow you to take larger value loans and repay them within shorter terms. Banks are now offering home loans for interest rates ranging from 6.8-6.5% for buying apartments in Chennai, which are the lowest in banking history.
Relaxed Eligibility Criteria:
Each bank or financial institution has a different set of rules for determining the eligibility of loan applicants. But everyone checks for age, steady income or assets, credit history, and general transaction history, etc. Most bank websites have home loan calculators where you enter the details and can get a tentative figure and payment terms that you would be eligible for. With these results from different banks, you can filter your choices even before the application process. Banks have also relaxed their stringent eligibility criteria for the time being to encourage more people to come forward and apply for home loans.
Home loans also come with a lot of tax benefits that can be claimed when filing your yearly taxes. According to Section 80C of the Income Tax Act of 1961, you can claim up to Rs. 1.5 Lakhs from your income towards the repayment of the home loan principal. Additionally, you can claim a deduction of Rs. 2 Lakhs under Section 24B of the Income Tax Act. There are also other benefits with regard to the ownership and rental income of the home, apart from the benefits claimed on the home loan.
Government Incentives and Schemes:
The Central Government had earlier announced that the Atmanirbhar Bharat 3.0 package had a 20% incentive for buying homes worth up to Rs. 2 Crores. This will easily buy you luxury apartments in Chennai. However, this was valid only up to June 30, 2021. But the buzz about the scheme is that there are talks of extending the deadline until the situation and economy are restored to normalcy, as it has not been officially closed as of now.
Tenure of loan repayment:
Home loans have the longest repayment tenure of all the loans that can be availed by an individual. The term can even extend up to 30 years. The longer the period, the lesser the monthly installment that you need to pay, but remember you will also be paying interest on the mortgage for that long. Using each bank’s home loan calculators, you can see how the final due would change based on different tenures. You can decide on the one that is most convenient and beneficial for you.
At Lifestyle Housing, we shoulder part of the burden by tying up with reputed national banks. Our customers are entitled to privilege and easier loan processing at these banks. Our sales representatives will guide you in choosing the best home loan for you. Our luxury flats in Chennai are perfect for first-time buyers as you will get the best and guaranteed ROI.