Without taking much of your time, a home without a home loan is an unimaginable dream especially in the present scenario wherein the inflation rate, and the cost of living is sky high. Hence, resisting the credit facility while buying your first home is totally not worth it. A home loan, apart from making the purchase easier for the buyer, entitles the loan subscriber with multiple tax benefits under section 80C and 24B.
In addition, avoid yourself from being misguided by the common myths prevailing around home loans mentioned below. Take the matters in your own hand, do the required research and find out a reality rather than reaching an inconclusive decision.
Higher Interest Rate means a Higher EMI
First of all, a higher interest rate never translates to higher EMI. Having said that, a higher interest rate definitely means a higher interest payable. But you can always do some pre-application calculations using the home loan EMI calculator and decide the right tenure based on the EMI you can pay every month.
Fixed Interest Rates are more Affordable compared to Floating Interest Rates
Fixed interest rates are higher than floating interest rate. Plus, the floating interest rate depends on the market and hence, as soon as the market goes down, the overall burden decreases.
High CIBIL Score Guarantees Faster Approval
CIBIL score is a crucial factor considered by lenders but only in case of unsecured loans. Home loans are secured in nature and hence, the CIBIL score would hardly matter. Even though having a good CIBIL score is always helpful.
Bottom Line: There are other myths that prevail around home loans. You’ll find them one by one as you start planning your loan application.