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Dhanteras 2015: This auspicious day is all about making a material acquisition – it literally means the festival of wealth. Dhanteras 2015 is especially exciting as some norms have been altered by the government, which allows you to get a bigger bang for your buck. While mostly gold and utensils are bought, a property purchase is one of the big ticket acquisitions on people's minds. But before you go ahead, here’s a lowdown on what you stand to gain if you go in for a home loan this Dhanteras. (Image Courtesy: ICICI Bank)
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1. DISCOUNTS: Both builders and banks have traditionally offered discounts around Dhanteras, by offering considerable discounts, and waiving off certain charges or even sweetening the deal for prospective home buyers. Dhanteras 2015 is especially exciting, since the RBI, the apex bank of the nation, announced a cut in its repo rate or the rate at which it lends to the commercial banks in India, by 50 bps in late September. Soon after the rate cut by RBI, State Bank of India slashed its lending rate by 0.40%. The new interest rates for home loan buyers thus stands at 9.55%. The largest private banks, namely, ICICI Bank, HDFC Bank and Axis Bank have also cut their home loan rates by 0.25%. The new rates of lending thus range between 9.60-9.65%. Builders today are not only offering substantial discounts but are also waiving off ancillary charges such as a floor rise charge or the stamp duty fee. Others are providing perks such as complimentary membership to clubhouses or gym membership within the apartment complex. Make sure you research thoroughly and avail of as many of these discounts and exemptions as possible from the builder as well as your lender.
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2. AFFORDABILITY: The big theme this year is “affordability”, and home finance companies too are following the lead of the top banks by slashing interest rates and offering further assistance. For instance, for homes valued up to Rs 30 lakh, buyers are being offered a 90% home loan. This takes care of things like the registration and stamp duty for the home, which constitutes anything between 5-10% of the value of the property. That apart, keeping in mind the fact that sales have been tepid over the past couple of years, builders are going all out to slash rates on their properties. The previous year was a big blow for builders as sales had dropped by over 40% nationwide. To avoid such a debacle this year, builders have unveiled new properties at rates that are lower in price catering to mid income segment. Not just that, rates on premium properties for high end markets such as Mumbai have been slashed by Rs 1000-1500 per square feet.
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3. WHAT YOU CAN DO: Now that you are aware of the number of deals that are going around Dhanteras 2015, it is time for you to take the plunge on the home loan front. However, be prudent and do not rush into any decision. The first thing to consider is the location – daily commute to your workplace, proximity to good educational institutions, and the neighborhood should be your prime considerations. Amenities nearby such as malls, market places, clubs, hospitals and good places to eat out should also be considered. (Image Courtesy: HDFC Bank)
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4. RESEARCH: Checking out all the details is all important when you are buying the house of your dreams. Instead of blindly going in for the advertisements of home finance companies, carry out the research yourself. You can visit web aggregators to find out the best rates that banks and home finance companies are offering.
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Home loans: This incentive is proposed to be extended to a house property of a value less than Rs 50 lakh in respect of which a loan of an amount not exceeding Rs 35 lakh has been sanctioned during the period from the April 1, 2016 to March 31, 2017. "It is also proposed to extend the benefit of deduction till the repayment of loan continues," the Bill said.
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Budget 2016: Arun Jaitley also announced an additional tax relief of Rs 50,000 per annum on a loan of Rs 35 lakh in 2016-17 for the first-time home buyers, provided the house cost does not exceed Rs 50 lakh. FM also proposed to raise the ceiling of tax rebate under 87A from Rs 2,000 to Rs 5,000.
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