Buying a home is one of the biggest decisions in an individual’s life. We all dream of owning a house someday. It gives us a sense of security and it also makes us feel like we have accomplished something in our life. However, buying a house is no easy feat in today’s economy. That is where home loans come to our aid.
Home loans can also help you to improve your credit score which, in turn, improves your chances of getting loans in the future. When you apply for a home loan and as you continue to make payments towards your EMIs, it automatically improves your credit score as well. You will get instant loan approval if you are planning to buy a car or apply for student loans in the future.
Under section 24 of the Income Tax Act (ITA), homeowners can claim a deduction up to a maximum of Rs. 2 Lakhs on their home loan interest for a self-occupied property. Apart from this, under section 80C of said act, one can also claim a deduction of Rs. 1,50,000/- on principal repaid. Hence, home loans not only help you to buy a house but also offer tax benefits.
When compared to other loan types, the rate of interest is quite low on home loans, primarily because it is secured against an asset. A home loan is the best way to pay for your house in the long term; it can significantly reduce the financial burden. Moreover, there are several options available when it comes to availing low interest rate home loan for your home.
When you apply for a home loan, the lender conducts thorough research of the property to check if there are any legal issues. The lender will also ensure that you don’t face any legal issues pertaining to the paperwork of the property. Furthermore, home loans can also give you a sense of security, something that is very important when you are planning to buy a house.