Buying a home is one of the biggest investments that you make in your life, and selecting the right home loan can provide you the necessary help to buy a house. But, before you proceed, there are a few important things that you must consider: –
- EMI Affordability
Since this is the part of your monthly income that will be used for the repayment of your loan for the next 10-15 years, you must not stretch yourself. See that the EMI does not exceed 45% of your salary.
- Down Payment
No bank will give you 100% of the property value as a loan; hence, you need to contribute something from your own pocket. As an estimate, around 20-25% of the amount will have to be funded by you.
- Interest Type
Generally, home loans either have a fixed or floating rate of interest. In case you feel that interest is low and can only rise further, opt for the first, or else floating rate should be what you choose.
- Charges and Penalties
It is always best to make sure of all the charges and penalties that apply on your home loan. Although basic charges might include things like processing fees, there may be penalties when you change EMIs or transfer the loan to another bank.
- Insure the loan
Home loan insurance will get you an insurance equivalent to the home loan. So, if anything happens to you, your remaining home loan amount will be paid for, while your family continues living in the house.
- Tax Benefits
Get a good idea of all the tax implications and benefits that you are entitled to receive, when servicing your home loan.
Consider the above points to choose from among the best home loans in India and buy the one that best meets your needs.
