With property prices touching the sky with every passing year, most of the buyers have to rely on home loans for purchasing their dream house. But, if you are a first-time home buyer and are contemplating to take a loan, you must have an idea about the functioning of the home loans. So, here are the top features of home loan that you must know.
While thinking about the home loan, what are the things that come to your mind? Flexible interest rates? Affordable EMIs? Or is there something more to it? Although these are some of the important factors, there are some other features of Best home loans that can create a huge difference.
So, if you have already started your hunt to find a prominent home loan, here are some of the features that you must know before you finalise anything:
- Options for Interest Rate:
One of the notable features of home loan is that it offers you the flexibility to choose the type of interest rate. Whether it should be fixed or floating, the choice is entirely yours. In the former, the interest rate remains fixed, irrespective of the changes in the market. In the latter option, the interest rate changes as per the modifications in the market. So, it’s important that you make a decision as per your requirement.
- Different Purpose:
The home loan facility is not only restricted to purchasing a new house. On the contrary, there are different purposes that it serves. Whether you want to buy a second-hand house or a plot to construct a home, everything is possible with best home loans. Buying is just one aspect; you can even get your home renovated by taking a home loan.
- Tax Benefits:
Not just a home loan lets you purchase the house of your dream, but you can even avail the benefits of a tax deduction. Under the section 80C of the Income Tax Act, you can claim a deduction for the purpose of repayment of the principal amount. However, the limit in this regard is up to Rs. 1.5 lakh. Moreover, you can even claim a deduction on the repayment of the interest rates for the limit up to Rs. 2 lakh.
- Early Repayment:
In the near future, what if you manage to acquire a salary boost or save a substantial amount of money? Of course, in such a scenario, anyone would want to pay off their debts with their excessive amount, isn’t it? Hence, with a home loan, you also have an opportunity of repaying the loan amount earlier than your tenure.
Your age and professional ability are the deciding factors for the approval of your loan application. For example, if you are young and earning enough, it would be easier to get a loan sanctioned. On the contrary, the more is your age; the fewer chances will be to gain the loan.
So, considering the above-listed features of home loans, you are sure to get a lot of benefits from this facility. Hence, without any further ado, get the full details and purchase your dream house today.