Reasons why you should prioritise home financing this year

Why wait to own your dream home? While buying a house is a significant financial commitment, but with a Home Loan, it becomes easily achievable. It's a wise move that extends beyond avoiding high rents, offering an opportunity for steady appreciation and building a valuable asset for your future.

In this blog, we shall discuss why getting a Home Loan is the right choice, especially now!

Factors favouring home purchase in 2023-24

In the last decade, India's real estate sector has seen significant transformation for various reasons. The main factors that drive this shift include technological advancements, economic fluctuations, changes in legal and policy framework, shifts in demographics and others. Regardless of the ups and downs, here are some factors that favour buying a home this financial year.

• India's real estate market will see an annualised growth of 9.2% from 2023 to 2028 (Source: Concorde).
• Provision of ₹79,000 crores in Budget 2023 for the completion of 80 lakh dwellings for the Pradhan Mantri Awas Yojana (PMAY), which aims to offer affordable housing to the urban and rural poor.
• Government programs such as AMRUT and Smart Cities Mission have helped Tier II and III become residential hubs.

Also Read: Can Home Loans be offered on the cost of the property?

Top reasons to get a Home Loan

With the above factors appealing to homebuyers to take the plunge and buy their dream home, most of them take support of Home Loans offered by banks or non-banking financial institutes. Here are a few reasons to get a home in 2023-24.

• Easy to buy your dream home: A lot of us lean towards larger apartments or complexes that offer lifestyle perks such as a swimming pool, club gym, mini theatre, dedicated areas for seniors, and play spaces for kids. While the price of such homes might seem like a distant goal, a Home Loan can be the vital financial support that enables you to acquire your dream home. Many developers also partner with different banks and financial institutions to offer diverse financing options, making it easier for you to avail a Home Loan. Thus, you don't have to stress over having insufficient funds at a go; instead, make easy, regular EMI payments for a long tenure, stretching up to 30 years.
• Enjoy tax benefits: Opting for a Home Loan is not merely to fund the purchase for a lot of buyers. Home loan offers tax benefits wherein you can claim a tax deduction on the principal amount and interest paid. You can claim a deduction of up to ₹1.5 lakh in a financial year under Section 80C of the Income Tax Act. Additionally, you can also claim a deduction of up to ₹2 lakh on the interest paid on home loans under Section 24B. If you take a second home loan, you are eligible for a deduction of the entire interest paid under Section 24B of the Income Tax Act.



Also Read: Avoid common Home Loan application mistakes

• Take advantage of the balance transfer facility: Many Home Loan lenders offer you a facility to transfer your existing home loan with another lender if they offer a lower interest rate.
• No prepayment charges: Home Loan lenders these days do not charge any prepayment penalty if you choose a floating rate of interest. This means if you have a surplus fund, you can repay your home loan amount without paying prepayment charges. However, banks and financial institutions may charge a penalty in case of fixed interest rates.

Bottom line

Home Loans are undoubtedly one of the most convenient ways of home finance. However, before applying for a Home Loan, ensure you fulfil the eligibility criteria (as it may vary from one lender to another) and compare different loan schemes available on various aspects to aid your selection. Axis Bank offers customised Home Loan solutions with flexible tenures, competitive interest rates, and easy application processes to make your home-buying journey smooth and hassle-free.

Also Read: Strategies to lower Home Loan EMI burden

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision