Many people still wish to own a property in their preferred cities. The satisfaction of owning your own dream home is priceless. These goals are attainable with the assistance of a house loan. It is now quite simple to apply for an HDFC home loan. HDFC provides candidates with housing loans at low interest rates. Aside from low interest rates, you also enjoy tax breaks on the interest you pay as well as the loan amount you return. However, it is advisable for you to have a high CIBIL score before applying for a home loan in order to avoid rejection on your loan application.
Benefits of HDFC Home Loan
There are several advantages to applying for a house loan in today’s world. Aside from the tax advantages of a house loan, an HDFC home loan provides the builder’s reliability and track record, as well as the legal paperwork relating to the property, when you apply. Along with perks such as HDFC house loan interest rate, there are three major advantages to applying for an HDFC home loan, which are as follows:
Low Prices
Homebuyers now have a choice of options in the inexpensive housing market. This offers two advantages for a house buyer: on the one hand, he may afford a larger property or get one for less money than he had anticipated. On the other hand, he may benefit from extra benefits of buying a home with a home loan, such as tax benefits, putting down a small down payment and then using a home loan to cover the remainder, and a longer loan payback period of up to 30 years.
GST Rates on Real Estate Purchases
The GST (Goods and Services Tax) rate on property transactions has been dramatically reduced. The current GST rate on residential property purchases is 5% (1% for affordable homes) without the benefit of an input tax credit (ITC). Purchasing a property today will allow you to take advantage of these low interest rates. As a result, now is a good time to apply for a house loan to take advantage of the lower GST rates as well as other tax benefits that come with an HDFC home loan.
Low Interest Rates
As interest rates have fallen in recent years, home loans have become relatively affordable. Cheaper interest rates mean lower EMIs, which makes home loans more tempting and affordable. HDFC provides its customers with the lowest possible interest rate on their home loan application.
HDFC Home Loan Repayment Tips
Here are a few ways through which you can easily repay you existing HDFC home loan:
1. Early Repayments
Taking up a home loan in your 20s or 30s provides you plenty of time to pay it off before retiring. Furthermore, you have the option of taking out a longer-term home loan, which means a reduced EMI for the same loan amount. A home loan can be taken for a maximum of 30 years which gives the borrower plenty of time to repay the loan with small EMIs.
2. On-time EMIs
The order in which your monthly EMI payments are made has a significant impact on your cash flow. If you work, your EMI should be the same as your pay date. If you are self-employed, make sure you have enough money in your bank account to cover the EMI payment. Paying your EMI on time keeps you from incurring additional fees as a result of late payments and protects your credit score.
3. Emergency Planning
Your financial plan should help you build an emergency fund in case of a medical emergency, such as immediate hospitalisation or an accident. This will ensure that the money set aside for your EMI is not spent.
4. EMI Limitation
If you have any other loans, such as a car loan or a personal loan, the EMI calculated using the HDFC home loan calculator should be added to the EMI payments on your other loans to determine how much of your total earnings is set aside for loan repayments. It is best to limit your loan payments to no more than 40% of your monthly income.
The primary benefit of a home loan is that you may become a homeowner right away rather than waiting to accumulate enough money. Furthermore, depending on your loan eligibility and the other restrictions of the house loan provider, your home loan payback duration might extend up to 30 years (the longer your loan tenure, lower is the EMI amount). If you have a low credit score then you can follow the measures on how to improve your CIBIL score before applying for the home loan. Moreover, you should always pick a longer home loan term since it decreases your monthly payback instalments and allows you to manage your other spending while managing your house loan EMIs. As a result, you will have the ease of making payments over time without placing a pressure on your resources.