3 Benefits of housing loan

With the increasing hike in the real estate industry, buying a house has certainly become a challenge. However, thanks to financial instruments such as home loans or housing loans, the applicant can get funding up to 80% of the total cost of the property. But, before we delve into the nitty-gritty of the home loan and see its benefits, let’s first understand what a home loan is.

What is a home loan?

A home loan is a financial aid extended to an individual to buy a house. The property brought with the housing loan will serve as a mortgage with the bank till the loan is repaid in full. While being a mortgage, the individual and his family are allowed to reside in the house. Apart from buying a property, home loans can be taken if the individual has to construct or renovate his/her property.

Home loans also come with certain benefits. If you are someone looking at buying a house and opting for home loans, this article is for you. Read along. 

Benefits of home loans:

• Tax benefit:

Amongst all the benefits that you reap with through the home loans, the tax benefit is certainly a benefit everyone is keen on. The government has laid this benefit to help more individuals buy their own house. According to this benefit, the government of India will deduct tax on the principal and the interest that is paid on the home loan. You can claim up to Rs. 1.5 lakhs deduction under the Section 80C of Income Tax of India. Under the Section 24B of Income Tax, a deduction up to Rs. 2 lakhs can be claimed.  

• Easy transfer:

In the later years of your repayment of home loans, if you wish to transfer the home loan to another lender who offers you a lower interest rate, then you can. The home loan transfers are pretty straightforward. You can check how your finances are going to look if you make the transfer with the help of the Balance Transfer Calculator. The calculator will help you figure out the benefits that you will receive as you make this transfer.  

• High payment tenure:

Another benefit of the home loan is tenure. Amongst all the loans or financial aids that you will opt for, the home loan gives you the maximum tenure to repay the loan. This tenure can go up to 30 years. Which means less burden of the EMIs. You can use the EMI calculator if you wish to seek the exact figures.

Apart from this, the home loan lets you enjoy capital appreciation, avoid the rent, and makes buying your dream home possible.