Once you select a bank for your home loan, you can either download the application form from their website or obtain it in person. This form will require your personal and financial information...
At Sowparnika The Bridge, we are dedicated to ensuring a smooth and rewarding home buying journey. As your trusted channel partner, we provide essential insights and guidance to help you navigate every step, making the process of securing your ideal home effortless and enjoyable.
A home loan typically finances up to 80% of the property's value, meaning you'll need to contribute the remaining 20% from your own funds. For first-time home buyers, navigating the application process and determining the down payment can feel overwhelming. However, once you familiarize yourself with the steps involved, you can smoothly transition into homeownership with minimal stress. Here’s how to prepare effectively for your journey towards buying your first home.
Once you select a bank for your home loan, you can either download the application form from their website or obtain it in person. This form will require your personal and financial information...
When banks issue loans, they assume a certain level of risk. Therefore, they will conduct a thorough review of your background to assess your repayment ability...
To evaluate your ability to repay, banks consider various factors, including your credit history and score, which can significantly impact your loan approval...
Once the bank has confirmed your personal and property information, they will approve your loan. The agreement will be drafted and must be signed by you...
Banks provide an Income Tax Certificate, which is crucial for claiming tax benefits associated with home loan repayments. This certificate outlines the total interest and principal amounts repaid within the financial year. It is required for claiming tax deductions on self-occupied properties. Ensure that you include this certificate with your tax returns and provide it to your employer or Chartered Accountant for accurate tax calculation.
According to Section 24, you can deduct the interest component of your EMI if the purchase or construction of the property is completed within three years from the year the loan was taken. For self-occupied properties, the maximum deduction is ₹2,00,000. In the case of rental properties, you can deduct the full interest amount, as long as the loss from such properties does not exceed ₹2,00,000.
You are entitled to a deduction for the principal repayment of your loan under Section 80C, with a maximum limit of ₹1,50,000. Additionally, you can also claim deductions under Section 80C for expenses related to stamp duty, registration fees, and other costs associated with transferring the property to your name. However, the total deductions across these categories must not surpass ₹1,50,000.