Residential | July 2022

Tips for choosing the right financial support when buying a home

Tips for choosing the right financial support when buying a home

They say the best time to buy a home is always five years ago! It is wise to start planning early if buying a home is on your mind, be it for living or as an investment. This dream is now easily achievable even if you don’t have a huge amount of money saved. There are many modes of financial support or efficient real estate advisors available to help you reach your goal faster. From maintaining a financial discipline to finding credible real estate investment advisors or deciding the type of home loans suitable for you, here are some tips on choosing the right financial support for buying a home:

Start financial planning early

Many youngsters these days save up early for making home investments and don’t wait till they get to middle age. Prepare a monthly budget that allows you to keep aside money as savings, make timely credit card payments, build a good credit score, invest in mutual funds or start a recurring deposit.

Get the services of a real estate advisor

With the help of a good real estate investment advisor, you can save a lot of money, time and effort, especially in the selection or purchase phase. A real estate advisor is not a real estate broker so ensure they have the right credentials and experience.

Do realistic research for your dream home

The sensible thing to do would be to ensure that the price of the property or home you have your eyes on is in line with your monthly salary or income. Banks do not grant 100% of the property value as a home loan, and they establish a margin on their loan or the percentage of the cost that they can cover. A minimum down payment for a home loan will be required by the banks. Home loan calculators on bank or credit websites can be helpful in knowing the eligible loan amount or down payment amount.

Improve your credit score rating

Banks look at your repayment capacity before they approve or reject your home loan application. It is very important to maintain a good credit score for a home loan. Above 750 is the minimum Cibil score for a home loan. You can improve your credit score by making your debt repayments on time."Credit score determines the rate at which you can access credit. The higher your credit score, the better interest rate you will be able to avail for future loans," says Adhil Shetty, CEO, BankBazaar.com.1

Research home loan types & repayment options

Apart from the home loan interest rate, processing fees or housing loan requirements like documents, you should also look into the various home loan types available;

  • New Home Loans
  • Pre-approved Home Loan
  • Home Purchase Loans
  • Home Loan for Construction
  • Plot Loans
  • Home Loan Top Up
  • Home Extension/Renovation Loans
  • Balance Transfer Home Loan
    As a borrower, your top priority must be to settle all liabilities as quickly as possible so many banks now offer their customers convenient loan repayment options;
  • Home loan with delayed start of EMI payments
  • Home loan by linking idle savings in a bank account
  • Home loans with increasing EMIs
  • Home loans with decreasing EMIs
  • Home loan with longer repayment tenure
  • Home loan with a waiver of EMI

Buying a home in the current market has become so much easier and monetarily lucrative, thanks to many tax benefits introduced by the Government. As a first-time home buyer, you are entitled to get home loan tax benefits under Section 80C, Section 24 and Section 80EEA of the Income Tax Act. These sections will allow you to avail a home loan benefit of Rs. 5 Lakh annually.2 The in-house loan team at Brigade can guide you on getting the required financial support without any hassles. If you are looking for the best investment options, check out the 1.5, 2, or 3 BHK projects by the Brigade Group available in prime locations like Bengaluru, Chennai, Hyderabad and Mysore. With thoughtfully designed amenities, Brigade Group’s residential portfolio includes villas, villaments, penthouses, premium residences, luxury apartments, value homes, urban studios, mixed-use lifestyle enclaves and townships.

References:

  1. https://economictimes.indiatimes.com/wealth/borrow/6-reasons-why-you-should-get-a-credit-card-as-soon-as-you-start-working/articleshow/89429724.cms
  2. https://www.indiainfoline.com/article/general-editors-choice/income-tax-benefits-for-first-time-home-buyers-in-2021-121031000234_1.html

 

Blog research sources:

  1. https://www.financederivative.com/5-tips-for-choosing-the-right-investment-advisor/
  2. https://www.urban.realtor/blog/3-helpful-tips-choosing-right-real-estate-investment-agent/
  3. https://www.bankbazaar.com/home-loan.html
  4. https://www.moneyvisual.com/personal-finance/tips-come-handy-choosing-right-financial-advisor/
  5. https://homecapital.in/blog/financial-planning-tips
  6. https://economictimes.indiatimes.com/wealth/borrow/7-home-loan-repayment-options-to-choose-from/articleshow/64031286.cms
  7. https://www.investopedia.com/personal-finance/financial-tips-after-buying-your-first-home/
  8. https://homecapital.in/blog/financial-planning-tips
  9. https://www.financialexpress.com/money/real-estate-buying-a-house-keep-these-five-tips-in-mind/2190579/

Residential, Brigade Group

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