How to Move Out from Your Rental Home?Purchase & Refinance Mortgage LoansUpdated on Jul 9, 2018 View more like this | Visit India, UN | Contact Arwind Sharma |
You work for 9 hours under a strict boss who is always making you question your career choices; then, you come home, and your spouse informs you a list of problems with your rental home.
Furthermore, your landlord keeps complaining about one or the other issue every day making you even question your rental choices.
So, what do you do?
Switching rental homes may not change the scenario as landlords will continue to reign over you and cause a nuisance.
Hence, it is about time you think of moving out and have your own home. However, for claiming a floor of your own, you will require some funding for which a mortgage loan may be necessary.
Mortgage loans one of the most popular ways of availing finance in India for getting a new home. Financial institutions can provide instant mortgage loan, processed within 24 or 72 hours. Some even offer a top-up facility, which customers can avail over their existing loans.
Banks and NBFCs provide mortgage loans with attractive interest rates and flexible tenures. But, why would you take a loan to buy a property?
Consider the following factors:
> Competitive Interest Rates
The Mortgage Loan Interest Rate of banks and NBFCs are highly competitive and considered the cheapest as compared to other loans. Interest rates for mortgage loans range from 12% to 15%.
> Hefty Financing
Salaried and self-employed individuals can get home mortgage loans up to Rs.1 Crore and Rs.3.5 Crore respectively. Thus, you get the flexibility to choose the amount you require for purchasing your dream home.
> Flexible Tenures
With loan tenures going up to 20 years, you get ample time for repayment. Further, you can also get a part-prepayment facility.
With part-prepayment, you get to repay a significant portion of the loan when you have the funds available at minimal or no extra charges. Part-prepayment will either lower the amount of EMIs or reduce the loan tenure.
You will get the benefit of loan foreclosure as well with negligible or minimal charges. Banks and NBFCs usually issue no foreclosure charges to individual borrowers.
> Affordable EMIs
With competitive interest rates and flexible loan tenures, your EMIs become highly affordable and prevent you from defualting.
Precisely speaking, the rent paid to your landlord every month is an investment without a return. So, wouldn’t it be wise if you turned your rent into a mortgage loan EMI and get yourself and your family a new home?
> Income Tax Benefits
Under Section 80C, those availing such a mortgage for new property can get tax benefits of up to Rs.1.5 Lakh. Owners need to reside in the home for availing this tax deduction.
Borrowers can even get income tax benefits of up to Rs.2 Lakh if fulfilling the following conditions:
> The home is purchased or constructed within 3 years.
> The loan must be availed for constructing or purchasing a new property.
> Co-borrowers who are joint owners of the loan can also avail this benefit. The deduction will be split between them depending on their share in the loan.
> Minimal Documentation
Applicants only need to provide KYC documents, bank account statement, latest salary slips, and an address proof.
Self-employed individuals have to provide proof of business, income tax returns (for the previous year), and audited turnovers (past year).
Hence, owing to all these factors, availing a Mortgage Loan is a way to move out of your rental home. Leading financial institutions provide a mortgage loan calculator with which you can plan your EMI based on the principal, the rate of interest, and tenure.
Furthermore, your landlord keeps complaining about one or the other issue every day making you even question your rental choices.
So, what do you do?
Switching rental homes may not change the scenario as landlords will continue to reign over you and cause a nuisance.
Hence, it is about time you think of moving out and have your own home. However, for claiming a floor of your own, you will require some funding for which a mortgage loan may be necessary.
Mortgage loans one of the most popular ways of availing finance in India for getting a new home. Financial institutions can provide instant mortgage loan, processed within 24 or 72 hours. Some even offer a top-up facility, which customers can avail over their existing loans.
Banks and NBFCs provide mortgage loans with attractive interest rates and flexible tenures. But, why would you take a loan to buy a property?
Consider the following factors:
> Competitive Interest Rates
The Mortgage Loan Interest Rate of banks and NBFCs are highly competitive and considered the cheapest as compared to other loans. Interest rates for mortgage loans range from 12% to 15%.
> Hefty Financing
Salaried and self-employed individuals can get home mortgage loans up to Rs.1 Crore and Rs.3.5 Crore respectively. Thus, you get the flexibility to choose the amount you require for purchasing your dream home.
> Flexible Tenures
With loan tenures going up to 20 years, you get ample time for repayment. Further, you can also get a part-prepayment facility.
With part-prepayment, you get to repay a significant portion of the loan when you have the funds available at minimal or no extra charges. Part-prepayment will either lower the amount of EMIs or reduce the loan tenure.
You will get the benefit of loan foreclosure as well with negligible or minimal charges. Banks and NBFCs usually issue no foreclosure charges to individual borrowers.
> Affordable EMIs
With competitive interest rates and flexible loan tenures, your EMIs become highly affordable and prevent you from defualting.
Precisely speaking, the rent paid to your landlord every month is an investment without a return. So, wouldn’t it be wise if you turned your rent into a mortgage loan EMI and get yourself and your family a new home?
> Income Tax Benefits
Under Section 80C, those availing such a mortgage for new property can get tax benefits of up to Rs.1.5 Lakh. Owners need to reside in the home for availing this tax deduction.
Borrowers can even get income tax benefits of up to Rs.2 Lakh if fulfilling the following conditions:
> The home is purchased or constructed within 3 years.
> The loan must be availed for constructing or purchasing a new property.
> Co-borrowers who are joint owners of the loan can also avail this benefit. The deduction will be split between them depending on their share in the loan.
> Minimal Documentation
Applicants only need to provide KYC documents, bank account statement, latest salary slips, and an address proof.
Self-employed individuals have to provide proof of business, income tax returns (for the previous year), and audited turnovers (past year).
Hence, owing to all these factors, availing a Mortgage Loan is a way to move out of your rental home. Leading financial institutions provide a mortgage loan calculator with which you can plan your EMI based on the principal, the rate of interest, and tenure.
