With the Indian economy in the revival mode after the major policy decisions related to Goods and Services Tax (GST), Demonetisation, and Foreign Direct Investment (FDI), the number of employment opportunities is increasing every year. This positive change has ensured that a lot of young graduates get their first job right after finishing their higher education. If you are also a young aspiring graduate, you would understand that when you start earning money and taking up responsibilities at work, you grow as a person.
After having worked for a few years and starting a family, you know that time has come for you to take another big decision of your life, i.e., buying your own home. Purchasing your own home at such a young age sounds really fascinating and would be an excellent accomplishment, but have you ever thought that nowadays prices of residential real estate across all major cities in India have skyrocketed and a decent house can cost lakhs. As you have just stabilised at your job, it is not possible for you to have such a huge amount in your savings account and investments.
This harsh reality may come to bite you, but there is nothing that you have to worry about. If you have a stable job and a consistent income, then Buying a Home with a Home Loan is the perfect option for you.
With the rising prices of residential properties all over India, most of the prospective homeowners have started buying a home with a Home Loan. Home Loans are a secured offering and are provided by most financial institutions in India to help prospective home buyers purchase their dream house. The money sanctioned as a Home Loan can be used to purchase residential property only which must be mortgaged with the lender. You can continue living in the house by just paying your EMIs (Equated Monthly Instalments) on time, no need to pay rent anymore.
The repayment tenure for the Home Loan can extend up to 30 years with the rate of interest starting from 8.50% p.a. The amount available as a Home Loan depends on a lot of factors including your age, income, repayment capacity, credit score and the value of the property to be purchased.
You can easily submit your application for a Home Loan through various online financial services marketplaces such as www.mymoneymantra.com. Here you can compare different Home Loan products, their interest rates, your eligibility expected EMI, and other factors. With all this information regarding the proposed Home Loan at your hand, you can take an informed decision and become the proud owner of your own home.
Though the traditional wisdom says that you must wait for some years before committing yourself to a Home Loan but when you have a stable job, steady income, and a family, then why must you keep on paying rent when you can live in your own home. There are several benefits to buying your home at a young age, some of the significant ones are listed below:
Your age is a crucial factor considered by lenders while assessing your Home Loan eligibility. The younger you are, the higher is the number of working years ahead of you. This assures the lenders that the loan would be closed while you are still working, as the retirement age for a salaried individual is considered between 60-62 years. This would help you opt for a longer repayment tenure who would reduce your EMIs significantly and you will be able to honour them without stretching your finances.
The Income Tax Act offers you considerable rebates on your income tax liabilities when you are servicing a Home Loan. This includes the interest component as well as the principal component. The various sections that offer income tax rebates are Sec 80C, Section 24 and Section 80EE. When you have longer repayment tenure, you can avail income tax benefits for extended durations.
As you are a young professional with many years of working life ahead, so when you Apply for Home Loan, the lenders would calculate your eligibility based on your age and income. Periodic increases in the income would also be factored in. Therefore, you will be able to avail a higher amount as a Home Loan which can be used to buy a bigger house for your growing family.
When you are making a good amount of money at a young age, you naturally look for investment options. Buying your own house is one of the safest investments you can make because there is no need to pay rent and the value of residential properties are only going to go northwards with increasing population and reducing space.
If you have some major expenses coming up or want to renovate your home according to your preference, then you can also avail a high-value top-up loan. This amount can be used to take care of any upcoming expenses or to start your own business as well.
There is an old saying that “Age is just a number.” It could not be truer than in present times. Why should you wait to have your own house, when you are perfectly able to afford it with a Home Loan? Just make sure that you do thorough research and compare various products before committing yourself to a housing loan.