Buying your first house? Follow these Home Loan tips

08 December, 2022

​​​​​​​Purchasing your first house is a milestone, enabling you to live in a space that is your own. However, since buying a home can be a monetarily heavy investment, you might require financial assistance. This is where a Home Loan can be of immense help. You can seek a lender who will provide the funds needed to purchase your house and repay the borrowed amount over the tenure. If you are worried about how to get a first-time Home Loan, then here are some tips that will help you out.

Home Loan tips for first-time buyers?

If you have been thinking about how to get a Home Loan as a first-time buyer, then these tips will get you started:

• Evaluate your financial health:
  
  Purchasing a home can be a significant investment and requires you to take stock of your financial standing. If you are thinking of applying for a Home Loan, you must be sure of your capability to repay the borrowed amount. Thus, take time and assess how much you have saved to purchase your house. Also, evaluate your monthly income and see how much money you can spare for EMIs (Equated Monthly Instalments). Keeping all of these criteria in mind, you can choose a property that fits within your budget and seek a loan amount accordingly.
  
  

• Research the market:
  
  When choosing a Home Loan, interest rates are a key factor you need to consider. The interest rate levied by the bank or housing finance company will determine your EMI payments. Thus, before you pick a Home Loan, it is a good idea to look at all the options available. You can compare the interest rates offered by different lenders to find the one most suitable for you. The same goes for Home Loan EMIs as well. You can use a Home Loan EMI Calculator to figure out the amount due each month across varied terms. It will help you narrow down the loan amount and interest rate that works best with your finances.
  
  

• Government schemes:
  
  To assist you in your endeavour to purchase a home, you can also look into government schemes. The Government of India launches various schemes to assist potential homeowners. For example, the Pradhan Mantri Awas Yojana (PMAY) has been initiated to address the shortage of urban housing in social-economically underprivileged sections of society. Such schemes usually offer concessions, such as lower interest rates, to help first-time home buyers. You can check the eligibility criteria for the same and avail of the benefits if possible.
  
  

• Evaluate down payment:
  
  If you are purchasing a house, chances are you will have to pay a down payment. A down payment consists of the portion of the property’s value that you have to pay to the seller upfront. Often, lenders also require you to make a down payment as a form of security. Thus, while applying for a Home Loan, make sure you ascertain if the lender has such requirements. If so, check to see if you have sufficient funds to make such a payment to the lender. If not, you can look for other banks and financial institutions that do not require a down payment.
  
  

• Tenure:
  
  As far as Home Loan tenure is concerned, make sure to choose one that aligns with your repayment capacity. For instance, if you choose a longer tenure, while the EMI amount will be lower, overall, you will pay more interest. On the other hand, too short a tenure will cause a spike in your monthly EMIs. Thus, try to choose a tenure that allows you to strike a balance between the EMIs due and the overall interest.
  
  

Remember to stick to a Home Loan option that fits within your budget. Also, keep an eye out for income tax benefits offered to individuals who have availed of Home Loan.

Do you feel more equipped to select a Home Loan now? To make things easier, you can rely on the HDFC Bank Home Loan and avail of high-value offer amounts at attractive interest rates. With easy repayment options and top-up loans, the HDFC Bank Home Loan will help you buy or construct the home of your dreams!

Click here to apply for the HDFC Bank Home Loan today.

Looking to calculate your Home Loan EMI? Click here to know more!

​​​​​​​*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Home Loan at the sole discretion of HDFC Bank Limited. Loan disbursal is subject to documentation and verification as per Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.