I want to buy a home. I know, that dream will come true only with a home loan. But I haven’t decided on the location or home yet. However I’m ready to pay EMI now for my future home.
Will leading Indian home loan providers like HDFC, SBI, ICICI, LIC give such loans to the willing customers? There is a genuine need on the customer side and it will not hurt the banks too. They can set the EMI initially as per customer’s preferences and eligibility and can later change the EMI according to the property price once the customers decide on the home.
Advantage customers:
No more worry about the real estate bubble.
One can take a home loan and enjoy the tax benefits but still can wait till the properties prices to come down, before deciding on buying the house. Also they can wait and enter when the home loan interest rates are low.
Postpone buying homes, not paying loans.
Some might not have decided on the city to settle, in the early stage of their career, some others would love to wait till their kid’s school admission to decide on the locality to settle. There are various reasons for people to postpone their home purchase even if they have the surplus money to pay the EMI’s. But not all of them would like to pay EMI’s close to their retirement age. If banks allow them to pay their future EMI’s before deciding on the house, they would definitely love it.
Advantage Bankers:
Home loan mortgage companies will receive regular EMI deposits from the customer even before they spend their first rupee. That will minimize the risk, right.
Now, what do you think?
Home loan exemption is to promote buying of home only. So even if you get home loan without home government will not give income tax exemption.
When will the customer get the home loan amount. whether while buying home or taking home loan.
Banks will not definitely pay before you really buy a home. because home loan rates are cheaper than any other loan rates, so any body need a loan can make use of it.
what will be the loan amount in this case?
meantime banks will not have any supporting document for the home that u r going to buy??
even if they pay after the customer bought the home, no customer will pay interest for the amount that he has not received.
either way it won’t work out.
//Home loan exemption is to promote buying of home only…..
By start paying your EMI earlier also you are going to buy home only. Govt. can charge appropriate percentage of taxes if the home loan was cancelled later.
//When will the customer get the home loan amount…..
Customer will not be given any amount. Loan amount will be given to the builders only.
//Banks will not definitely pay before you really buy a home…..
Yes, that’s the advantage for the banks here. They don’t need to pay the builders till the customers decided on their home, but still have the EMI deposits from the customer
//what will be the loan amount in this case?…
Home loan providers can decide that based on the income of the customer.
//even if they pay after the customer bought the home, no customer will pay interest for the amount that he has not received…..
As I’ve mentioned in the Advantage customers section, there are certain advantages like you can enter when the home loan rates are low, start paying EMI’s earlier before settling down to a specific location.