For both men and women, owning a home provides excellent financial security. Nowadays, more women are taking out Home Loans because more and more women are becoming financially independent.
However, purchasing a home can occasionally be challenging, whether putting down the required amount or choosing the best mortgage company based on the offered Home Loan rates
Numerous banks and housing finance organizations offer attractive Home Loans to women borrowers. The creation of women-centric home lending programs is one of the biggest benefits of empowering women.
Why Should Women Get a Home Loan?
Several factors that encourage women to take out a mortgage loan are –
- Specialized programs: Lenders are launching programs and affordable interest rates for women loan applicants to encourage them to take the first step toward becoming homeowners.
- CLSS: No matter what the gender of the applicant, first-time homebuyers are eligible for a PMAY subsidy of up to Rs. 2.67 Lakh.
- Attractive prices: Today’s real estate market provides high-quality properties at competitive rates, making it the ideal time to consider purchasing a home.
5 Ways Women Can Benefit From Getting a Housing Loan:
Here are 5 ways women might profit from House Loans at this age-
1. Pay Interest at Lower Rates
There is a variation in Home Loan rates of interest offered to men and women. Many lenders offer women who take out Home Loans reduced interest rates, enticing them to do so. Despite having a nominal interest rate between 0.5% and 0.1%, this subsidized Home Loan’s rate of interest significantly impacts the EMI.
A lower interest rate will have a positive impact on your monthly payments. It means better affordability, tremendous savings, and relaxed, easy repayments because a Home Loan
can run anywhere from 15 to 25 years.
2. Possibility to Select Longer Repayment Terms
Women can stretch their budgets by making lesser EMI payments because they can repay the House Loan over a longer period of up to 25 years. The financial stress is thereby reduced. If you opt for a longer term, you can fulfill other obligations while paying off your mortgage.
Many lenders don’t charge any fees when the borrower makes partial payments or forecloses a House Loan. Because of this, you can pay off your loans early.
3. Relaxation in Stamp Duty
Stamp duty rates may be lowered by 1%-2% if the land is listed in the name of a woman instead of a man. Even though 1%-2% may seem small when the total cost of the property is taken into account and that 1%-2% stamp duty charge is computed, the amount saved is significant.
Also Read: What Is A Home Loan & How To Repay It Faster?
For instance, a woman purchasing a home in Delhi must pay 4% stamp duty, whereas men must pay 6%.
4. Benefits of Being a Co-Borrower for Women
Home Loans can be applied jointly. And in the case of a married couple, the spouse combined income may increase loan eligibility and give more affordable interest rates. This way, women borrowers can get the amount required for the property purchase without any hassle. And being the primary borrower in a Home Loan, the women applicant can get lower rates on their borrowed amount.
5. Tax Benefits
Like their male partners, women can get tax benefits on their interest and principal repayments, up to the maximum allowed amounts of Rs. 2 Lakh and Rs. 1.5 Lakh, respectively. To qualify for a tax deduction, ensure you meet all the requirements, such as –
- Construction is completed, and the property is acquired
- The house or property shouldn’t be sold by the borrower within five years of the possession date.
You may obtain a considerable loan amount ranging from Rs. 30 Lakh to Rs 3.5 Crore to purchase the home of your dreams, with lenders tightening their restrictions to attract female consumers. This, together with clear qualifying standards, simplifies the application procedure for a Home Loan.
Understanding the obligations, risks, and concerns of house ownership is critical. Take advantage of educational assistance and home finance incentives for women to understand better what to expect when purchasing a home.