Home Loans are available by nationalized and private banks more easily than before .EMI on the home loans reduce than before and the loan refund time frame increase than before.
But this one is not only beneficial from point of view of debtors but also from the point of view of banks as banks get high-income.
As the interest rate reduce in the market therefore banks concentrate more on capital return than the interest rate return.
From the debtor point of view also get the benefits of the low EMI and long period to return debt which reduce the burden on the debtor.
There are some precaution need to measure before apply for the home loans from any banks.
1. Terms and Conditions: The whole terms and condition need to check before apply for the home loan.
Check that If there is any hidden charge on the loan.
2.Check the lowest interest rate : Check the lowest interest rate available in the market normally the interest rate are more or less fix, but its differ from bank to bank .As the 1% change is also a big matter .
3. EMI Amount: Emi generally charged 40% of the net disposal income as per the rule. As the future is uncertain it’s better to reduce the EMI 15% of the disposable income ,and save the certain amount as reserve.
4. Future Plan: People generally increase their EMI amount for the future as they think there total income increases in future .It’s true that after 5 years the total income of anyone more than the present income ,but on the same time there expenditure also increases with the time ,so its better t to keep the EMI in the same formate than to increases in future.
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