How to Select a Home Loan
This year’s budget is touted as being a ‘good’ one for the common man. And not without reason. The tax benefits have been the main reason for this perception. Without any doubt investors have benefited from the largesse of the finance minister. And home loan seekers are also not complaining. Which brings us to the all-important question from his perspective — now that tax sops are at an all time high, how does he go about zeroing in on the right housing finance company
Until some months ago, selecting a home loan was child’s play. Floating rates that were a few percentage points below the fixed rates were the obvious pick of the borrower. Spiraling inflation and rising property prices have plunged the prospective borrowers in a dilemma. Adding to this confusion is the constant increase in the interest rates on home loans.
Living in a home makes a person attached to the home. Home not only provides its four pillar and a roof over ones head, but also gives its financial shelter to those who live in. time is not always remained the same, in this ups and downs of life, at times individuals have to face financial deficit. And to this view, secured home loan emerges as one of the best borrowing option for such individuals. Applying a secured home loan is very simple and an easy task.
Types of Home Loans
Home Purchase Loan
This is the common loan for purchasing a home.
Home Improvement Loan
This loan is given for implementing repair works and renovations to your home.
Home Construction Loan
This loan is available for the construction of a new home.
Home Extension Loan
Given for expanding or extending an existing home. For example, addition of an extra room, etc.
Why should one consider taking Home Loan?
The reason for seeking home loan varies from person to person. Some takes it to say good bye to rented accommodation, some wants to create asset and keep it for future use, yet some buy it for the purpose of investment. Nothing can repay you back as much the property will.
Housing finance majors are fighting tooth and nail to grow their loan portfolios, which is great news for the consumer. For, now he/she gets a handle to wangle the best rates.Rack rates — or rates given on the rate cards or ‘official’ rates — have had little meaning for some time now, because the consumer has learnt to negotiate hard and lower the rates.The drive for market share has meant players are actually reducing the home loan rates, which goes against the trend of rising rates that started last year.
