Pune

Our experts put before you a meticulous fiscal plan that could help you sign on the dotted line this New Year. 

So, what are you waiting for? Go ahead and make the purchase!

Buying one’s 'own' home has been an aspiration as well as a requirement of every urban Indian. 

However, rising realty rates have made it seem more of an illusion. That's the reason a majority of Indian home-buyers are sitting on the fence and only a handful of them go ahead and seal the housing deal. 

But now, with the outskirts of premium cities emerging as residential hotspots and Tier-II cities offering more affordable housing options, buying your dream home could now become a reality.

Your 10-Point Financial Plan

1 Decide on your budget according to your requirements;

2 Check your credit score. Your Housing Finance Institutes (HFI) will consider your financial profile before lending you a loan. A score above 750 points is good enough;

3 Check whether you can avail any government scheme like PMAY and which budget group you fit into like LIG, MIG and HIG;

4 Calculate your home loan eligibility and decide your EMI. If you are younger, you can opt for loans for a longer tenure. More the tenure, lesser the EMI. EMI on current interest rate is Rs 850 per lakh, which was Rs 1,000 a year ago;

5 Consider down-payment options;

6 Also, check how much the bank can lend. Generally, HFIs disburse loans upto 90 percent: Under-construction properties allow more room for financial planning. Payments are slab-wise; Ready-to-move-in properties are free from GST. Yet, your finances must be ready. It can help you save rent; Resale properties depend on location, segment, amenities offered and number of years they have completed. HFIs finance loans on resale properties depending on the condition of the home. Older schemes may have fewer home loan options, but higher chances of redevelopment.

7 Three year's tax returns are a must. Keep them up-to-date. In addition to this, ensure that the taxes are paid and even for the ongoing year, the advance tax has been paid;

8 Check if you do not have any other loans. Thus, you can take lesser liability; Also, plan a budget for the interiors 9 and basic necessity furniture;

10 Consider if you want to add co-owners. Your spouse can also be co-borrower for the housing loan, which enhances your prospects of getting maximum amount sanctioned.

Experts speak

If "you are looking at purchasing a home, now is the best time to do so due to falling interest rates, great offers from lenders, government subsidy schemes, et al. Higher loan tenures provide customers the benefit of lower EMIs. It is advisable to keep the loan tenure to the maximum (based on the EMI) so that the customer can comfortably pay. It is better to opt for floating rate loans that permit pre-payment/pre-closure free of cost."

"Borrowers should make a comparative study of the financial institutions and consider other factors such as the principal amount, loan eligibility, loan tenure, processing fee, file charge, stamp duty, insurance and EMIs. Additionally, you must conduct adequate research on the pedigree of the financial institution, customer service, and operational efficiencies, as they play a critical role in influencing your decision."