First Time Buyer

Set budget with buffer to include hidden cost such as stamp duty, legal fees, fire insurance, etc.

• Visit property during day and night to obtain a better observation of the surrounding.
• Check surroundings for elements that may affect the property.
• Do due diligence on the seller/ developer.
• Understand developer’s terms and conditions in case of purchase of under construction property.

Property Investors

Be objective when you compare & analyse property investments:

• Analyse return on investment (ROI) using realistic numbers.
• Assess the impact on your cash flow and ability to repay loan under increasing interest rate scenario.
• Keep in touch with government regulator’s policies and development progress as this will impact the return on investment.
• Avoid being distracted by emotions.

Tax Benefits on Home Loan

Things you must know about tax benefits on home loan:

1. Home loan borrowers are entitled to tax benefits under Section 80C and Section 24 of the Income Tax Act. These can be claimed by the property’s owner.
2. In the case of co-owners, all are entitled to tax benefits provided they are co-borrowers for the home loan too. The limit applies to each co-owner.
3. A co-owner, who is not a co-borrower, is not entitled to tax benefits. Similarly, a co-borrower, who is not a co-owner, cannot claim benefits.
4. Housing companies usually require all co-owners to be joint borrowers to a home loan. Loan providers specify who can be a joint borrower for a home loan.
5. The tax benefit is shared by each joint owner in proportion to his share in the home loan. It’s important to establish the share for each co-borrower to claim tax.
6. The certificate issued by the housing loan company, showing the split between principal and interest for the EMIs paid, is required for claiming tax benefits.

Home Loan Process

1. Decide on required loan amount, loan tenor by assessing value of the property you want to buy, how much cash you in hand, your monthly financial commitments and expected future savings.
2. Compare different loan programs using multiple parameters such as approved loan amount, monthly instalment payable on loan, total interest paid on loan, pre-payment penalty, processing charges, other fees and charges levied and then select the program that suits your need.
3. Understand the list of documents required to be submitted and organize them to get the loan approved and disbursed faster.
4. To get a faster approval, submit all the required documents along with fully completed application form and respond promptly to bank’s queries.