Many Indians stretch finances for dream homes, leading to years of lifestyle compression, career stagnation, and deferred savings due to hefty home loans. Experts advise prioritizing true affordability over aspirations to ensure loans enhance life, not dictate it.
Several Indian states offer financial incentives like lower stamp duty and concessional home loans to women homebuyers, aiming to boost female real estate ownership, financial inclusion, and gender equity.
Homeowners can claim tax deductions on interest paid for both original home loans and subsequent loans used to repay them, up to Rs 2 lakh for self-occupied properties under the old tax regime. This benefit, supported by a 1969 CBDT circular, is expected to continue under the Income-tax Act, 2025, provided proper documentation is maintained.
In India, cancelling an under-construction flat purchase depends on who is at fault. The RERA Act, 2016, limits booking amounts to 10% before an Agreement for Sale. Buyers cancelling voluntarily face tiered deductions, while builder delays mandate a 100% refund with interest, though some administrative fees are non-recoverable.
Coinbase and Better Home & Finance will allow qualified borrowers to use Bitcoin or USDC as collateral for down payments on Fannie Mae-backed mortgages starting summer 2026. This initiative follows a 2025 FHFA directive to consider crypto in mortgage risk assessments.
Home loan affordability calculators help buyers assess repayment capacity and monthly installments before purchasing a property. These tools consider income, existing EMIs, loan tenure, and interest rates to ensure a smart financial investment.
Buying land? Plot loans from banks like PNB Housing Finance and LIC Housing Finance can help. Eligibility requires being an Indian resident aged 21-65 with stable income and good CIBIL. Loans typically cover 75% of the price, with higher interest rates and shorter terms than home loans. Lenders prefer developed residential plots within city limits.
This article outlines five essential factors every Indian homebuyer should evaluate before committing to a home loan: keeping the loan amount affordable within 35-40% of monthly income, balancing loan tenure to minimize total interest, considering co-borrowers for eligibility and tax benefits, shopping around for the best interest rates, and maintaining financial responsibility through emergency funds and auto-debit payments.
