Budget for New Home Loan

Top 3 things to consider while creating a budget for your home loan

Buying a house is perhaps one of the longest relationships you will ever be a part of. This is because a home loan in India can be given up to 30 years. Hence, you need a lot of patience and dedication when it comes to matters of a home loan.

The reason why a home loan in India is for a longer tenure is due to the higher cost of a house. Yes, buying a home is not a cheap affair and can cost you lakhs or even crores. Such kind of money is difficult to earn at an age of 25-30. Hence people take the help of the best home loan in India to fulfill the dream of owning a house.

Since 14 lakhs is also a huge amount and you might not be able to have such an amount with you, we have created a list of Top 3 things that you must consider when creating a budget for buying a house.

With these tips, you should be able to save enough money for the down-payment.

1.Start budgeting:

This is something we can learn from our parents especially mothers. Budgeting will help you understand yourself in a better way. Start by writing down your monthly income. Next, you must list down fixed expenses like rent, electricity bills, groceries, travel, etc. In the end, you will understand what kind of approximate savings you can make monthly.

2.Start Saving/Investing:

Just saving the amount is not the solution. While you’re working hard to earn a salary/profit, let your savings work hard too. Invest in SIP mutual funds, debt instruments, and government securities so you can earn a good amount from it too. If you can give it a time frame of 1-3 years, you can expect better returns than bank deposits.

3.Maintain/Improve credit score:

Remember that your Credit Score is very important when it comes to matters of getting better loan deals. Hence as much as possible, always pay your credit card bills, loan EMIs on time. If your credit score is above 800+, Banks term you as a reliable customer and hence will give you the lowest interest rates on home loans. Every discount matters as you save a lot of interest money. Check your Credit Score now.

Budget 2021 for home loan applicants

Budget 2021 focused on affordable housing. Houses under the stamp duty value of 45 lakhs come under this scheme. Here are some of the benefits if you fall under these criteria.

1. In general, under Section 24(b) of the Income-tax Act, you can claim a deduction of up to 2 lakhs for interest payments in a year.

2. Now, you can also claim a deduction of up to 1.5 lakhs as per section 80EEA.

3. This means you can now claim up to 3.5 lakhs worth of deductions in a year.

Overall, buying a house is a huge decision and involves a lot of funds. Hence if you don’t have the money for a down-payment, then it’s time to start planning, budgeting, saving, and investing. When you’re ready, you can always apply for the best home loan deals in India via Ruloans. We will always help you borrow right.

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