Own your Dream Home by Choosing from Different Types of Home Loan

Home Loans have emerged as the most feasible source of financing your home purchase. This is quite evident if you look at the manifold increase in the demand for Home Loans. You can take a Home Loan as a single borrower or a Joint Home Loan as a co-borrower with your spouse, children, or parents.

To meet the diverse needs of home buyers, different types of Home Loan are on offer. Listed below are the popular types of Home Loans.

Home Purchasing Loan

This type of loan is utilised for the purchase of a house/apartment/villa or an under-construction property. Usually banks and housing financial institutions offer loans to the extent of 80% to 85% of the property value. This type of loan offers you tax benefits as well. You can claim a deduction under section 80C in respect of the principal repayment, while the interest on the loan can be claimed under section 24 of the Income Tax Act.

Land Purchasing Loan

To construct house of your choice, you need land. To buy a suitable land, you can avail a land purchasing loan. Upto 80% to 85% of the land value can be availed as loan. Unlike a home purchase loan, no tax rebate is available for a land purchase loan.

Home Construction Loan

Land is a premium asset whose prices are always appreciating. If you own a piece of land, you can use the same to construct a house as per your specifications and taste. This is where a home construction loan comes handy. For calculating your eligibility for this type of loan, the land value plus the construction costs are calculated. The only necessary prerequisite to availing this loan is that the land on which you are constructing should be purchased a year before you apply for the loan.

Home Improvement Loan

Want to renovate your home and give it a new look? A home improvement loan is your best choice. You can take a home improvement loan for waterproofing, tiling, construction of an additional room or modifications to the existing rooms, all types of electrical work, plumbing, and external and internal painting.

Home Conversion Loan

This type of loan is helpful when you live in a house which is under a Home Loan and you need to move to another home for whatsoever reason. The previous Home Loan would be transferred to the new house with a slightly higher interest rate.

You can take these loans either under fixed interest rate or floating interest rate. A fixed rate of interest carries a constant rate of interest across the term of the Home Loan. On the other hand, a floating interest rate keeps varying according to the market forces. You can take a call, depending on the trend in interest cycle. If the Home Loan rates are set to fall, a floating rate Home Loan brings down your EMI. Conversely, if interest rates are predicted to go high, a fixed rate Home Loan is your best bet.

Choose from the above category of Home Loans, depending on your specific needs and fulfil your dream of owning your home.

TechMetrix- Worls of Technology & Gadgets

Search This Blog

Own your Dream Home by Choosing from Different Types of Home Loan

Comments

Post a Comment

Popular posts from this blog

Backing Crawling Indexing

Profiles