Your Guide To Home Loan | Letzbank

A permanent roof over your head is a dream every adult wishes to fulfill. As soon as we start earning, most of us start investing and saving to ensure that we can accomplish one of the most common goals – a home of our own. With the rise in housing rates, not everyone can accomplish to buy a house without the need for finance. Which means, that more and more people every year begin their search for a home loan that will help them fulfill their need to find a comfortable nest where they can spend the rest of their lives.

It is absolutely crucial to not only pick the right home, but also the right home loan provider. But with the variety of home loan choices at your doorstep, how do you choose the best home loan? Here is a simple guide to home loans to help you decide:

      Eligibility – The first and foremost step towards the beginning of a home loan is to check whether you are eligible. The eligibility criteria for home loans is much more stringent than other loans as the loan tenure is longer. Each bank has its own criteria set in place for eligibility but generally you will be eligible for a home loan if you have a minimum income is such that 40% of that can go towards the home loan, leaving you with enough money to pay your other expenses. There is also an age criteria in place and usually home loans are offered to individuals that fall within the 21-60 years of age bracket.

Loan Tenure –Banks determine the age of the borrower too to decide on the home loan tenure and it does not solely decide on the borrower to determine the loan tenure. If you are above the age of 45, banks may offer you a home loan with a shorter tenure of not more than 10 years or so. This is because the banks consider the age of the applicant at the time of loan maturity to determine which loan tenure will be the most comfortable. It becomes easier to find longer home loan tenure if you are younger, as you have more years before retirement and hence, can easily repay for the next 25 years or so. However, bear in mind that while a longer tenure will lower your EMI, the amount of interest that you will be paying over the years will be a lot. So, don't get carried away by a longer tenure if you can easily finish to pay off the loan in a shorter time frame.

 Income – Banks usually offer loans to salaried and self-employed individuals. Your income is a major factor in determining your home loan quotient and the bank not only takes into account your take home salary per month, but also any annual bonuses and monthly performance incentives you may receive (as long as they are consistent). One of the best ways to increase your home loan eligibility is by bringing in your spouse as your co-borrower. With two incomes, your home loan application becomes much more secure and banks will be willing to approve your application with ease.

Tax Benefits – Home loan borrowers can enjoy tax benefits for EMIs paid on home loans under Section 80C and Section 24 of the Income Tax Act.Each co-applicant of the home loan can claim a tax rebate for upto Rs. 1.50 lakhs for principal amount repaid and upto Rs. 2 lakhs for the interest paid. The tax benefits are more for a second house purchased. However, please bear in mind that for houses that are still under-construction, the tax benefits can only be availed once the construction is complete and the borrower gets to reside in the house.

Letzbank offers a variety of loan offerings including home loans from leading banks and independent financial institutions. You can benefit from a comparative display of all home loan choices at one page that saves time and enables you to make a decisive choice. Letzbank also offers service charge waivers on all loan applications that get processed directly at their website. You can make use of a variety of services offered by Letzbank, such as, EMI calculator for home loan, services to check your credit score online and also file your Income Tax returns online with ease. Not only that, you can avail the benefit from your credit, debit cards and wallets by making use of the various offers and deals available, thanks to Letzbank’s partnership with different e commerce websites and banks.