Best time to apply for a Home Loan for maximum benefit
Thanks to the mushrooming banking and finance industry, your dream home is more likely to turn into a reality. The best time to apply for a home loan is right after you have decided to go ahead and make those dreams come true.
While making that happen may seem to be a tough ordeal in the initial stages, the fact remains that if one is aware of the pros and cons, the venture turns out to be less cumbersome.
So what is the right time to take a home loan?
That depends, on you, the market and the status of the industry. Let us simplify some basic things here before we move ahead to the nitty-gritty’s’
After the initial realisation strikes and propels you to indulge your finances in a home, the best thing to do is examine the prospect from every possible facet that you can afford to invest on the same.
Some questions that you need to ask yourself are:
- Is the home loan eventually going to turn into an asset or a liability for me? This is when you analyze your own position in the market, your credit score, and your ability to not only take but also pay off the most desired home loan that you wish to apply for.
- What are my alternatives? It is extremely important for you to forage the market before you take the leap into deep waters. Remember, the loan needs to be paid off too.
- How do I get the maximum benefit out of the home loan? First, define the specific benefits that you wish to get. Is it a larger coverage on the principle amount that you want? Or do you wish to pay lesser interest rates. The market is your library, and the broker is your best guide in this regard, so make the best use of both.
Once you have delved upon the time that you consider to be the best time to apply for a home loan for maximum benefit, you need to shift your gaze towards the industry now.
The banking industry also has its own best times and tough times. It is of utmost importance for you to be aware of the current scenario of the finance sector as that will help you in finding the answers to all the questions that you may have regarding the following determinants:
- Time of the Year:
The best time to apply for a home loan to get maximum benefit is the end of the financial year. If you had to pick a specific month, April could be your best bet.
- Interest Rates in the Market:
Just like any other variable in a volatile domain, the interest rates fluctuate too. There are times when people can reap the best benefits out of the low interest rates that float in the market pertaining to home loans.
- Prices of Properties
Digging deeper into the real estate industry will not only help you get the best price for the property you wish to purchase, but will also give you invaluable insight when it comes to calculating your own expenses, reaching out to the best lender and ensuring the successful repayment of the loan.
Added Benefits that Come With Your Home Loan
Yes, the Income Tax Laws administered by the Government of India allows you to save income tax on home loans.
According to the rules that govern the financial sector in India, the debtor is entitled for benefits on two aspects of the loan:
- The Principal Component of your Loan (under Section 80C)
- The Interest Component of your Loan (under Section 24)
Also, should you wish to make a joint purchase of the home along with your spouse, then the home loan you take will give you both the same benefits, provided your spouse has his/her individual source of income.