Home Loans Home Loan Features and advantages of taking Home loan

Features and advantages of taking Home loan

Benefits Of Home Loan

The most important benefit of home loan is giving you an easy way of buying your dream home. In other words, home loans provide you loans for purchasing houses at flexible interest rates, balance transfer facility and other advantages.

In these days, it is difficult to buy a home from savings. By the time you have sufficient savings, you would have turned 60 or the house prices would have touched sky. Hence, home loan gives you the benefit in getting ownership of your house instantly. You can pay your home loan in convenient and monthly installments. Doesn’t it sound fascinating?

Process

You are a home hunter. You have chosen a house and want to convert it into your ‘sweet home.’ Instead of borrowing from private lenders, friends or relatives, opt for home loan facility provided by banks and other financial institutions. Every bank has a systematic process to follow. Build you good credit, fill the documents, and verify the legal aspects of your property documents. If everything seems to be fine for the bank, the home is yours.

Interest rates

Banks offer flexible interest rates to the borrowers. The borrower gets an affordable and easy way to avail home loan. Every month, you have to pay an installment to the bank. This is relatively easy as compared to the lump-sum payment. You can even choose from the floating or fixed rates. You can study the interest rates prevailing in the market and select the perfect one for you appropriately.

Loan at your door service

You are so busy with your work that you cannot personally go to the bank often. Some banks also offer doorstep service for collection of documents. You just have to keep your documents ready properly, that’s enough.

Savings and savings

You do not have to pay rent for an accommodation after availing home loan facility. If you are repairing your rented house, the money and efforts will be in waste. But this is not the case with an owned house. Even during the tenure of home loan repayment, the value of your property gets appreciated.

Balance transfer facility

You have obtained home loan from a bank. But with you are not satisfied with the terms and the bank is not willing to alter it. You need not worry. You can balance transfer the home loan to another bank. Note that this facility is not available with private lenders. You cannot shift from one private lender to bank or another lender for availing lower interest rates. Thus, home loans are very advantageous with this respect.

Not repay – but prepay

You want to pay off your loan before the date of its completion. Yes, you can do it. Banks charge prepayment charges. But now-a-days, even that is waived off by some of the banks.

Thus, with home loan facility, a borrower acquires number of advantages. Sometimes, the loan is approved before the selection of property. In these days, transactions are processing at faster speed. With online means, you can access your loan account from your personal computer too.

3 COMMENTS

John Brown October 25, 2015 at 6:26 am

I agree with this. Home loan really helps to build own your home with less burden. The labour and material costs are growing at a pace higher than the inflation and interest rates. By comparing this you will benefit by getting a home loan to own or build your sweet home. Sharing my personal experience.
Ameena K March 15, 2016 at 8:41 am

A home loan helps most of the Indians to attain their ultimate dream, a home. And this article helped to understand the concept. Even if I have seen many of my colleagues taken and closed loans, I was completely unaware of prepayment charges. I wonder what will be the average percentage of home loan.
Vandana Agarwal June 22, 2016 at 10:19 am

Balance transfer facility in home loans is something similar to portability. In this if the service or the intrest rate provided by the bank is not suitable so it can be changed to other bank of choice. Does it really holds true? There surely must be some extra hidden cost or the intrest rate higher. Else home loans are best option intead of waiting.