A to Z about Home Loans - The Basic Guide to Home Finance by Tata Capital

HOME LOAN

Things that dream homes have in common

Sep 04, 2018

Everyone dreams of owning a house that is unique. It is fact that each home has its own quirks and corners. Now, as yourself what do you think of your dream home? The answer will vary from individual to individual. While we tend to furnish our home to make it more personal, however, there are some underlying common themes running across all homes. After all, you have to match up to your neighbour or stay near your relatives or you want to be close to the shopping areas or close to the airport or a metro station.

Let’s see what are common among dream homes that people aspire for:

Locality

In today’s traffic-filled roads commuting is an arduous task that you can avoid if you can help it. So, you tend to find a home in a locality that is in close proximity to all your daily needs – schools, shopping, religious places, entertainment centres, metro station and the like. Perhaps, if you are a young couple with growing kids, then schooling becomes an important factor and you tend to locate your home nearer the school you want your children to go.

Thus, good location satisfying several requirements is a common theme for many dream homes. Besides, homes in a good locality rise in value and can give you handsome returns if and when you want to sell it in the distant future.

Sometimes, the locality you want may cost you more. If you really like the place and are open to borrowing the extra fund, a home loan can be the answer.

Spaciousness

Everyone has a concept of what spaciousness means for them. A space for you and your children, for some it may be a home office, for others a guest room or two for visiting family and friends. There are also those who want a backyard for gardening or a clubhouse. Whatever your needs are space is a common theme and you will decide on a home based on the space you and your family would need.

While for many, these tend to be pre-requisites, some incorporate these changes during renovation as well. If you are planning on creating a special space for yourself, talk to financial institutions like Tata Capital that provide housing loans for renovation as well.

Quality of construction

Many times you tend to get carried away by some innovative streak to build a home that is unconventional and futuristic. However, you have to remember that your home is for the future and you want the home to last longer and so you have to ensure a high quality of construction. Of course, you can be innovatively provided you maintain the basic quality of construction. You can include quality of fittings here too. Your bathrooms fittings, flooring, façade, kitchen cabinets and wardrobes must all be of the best quality of materials to last longer.

Thus, quality of construction of the home that you build or the built home that you buy is a common factor and you will do well to go with the common flow.

Smart Homes

In today’s Internet age, smart homes are very convenient and useful to possess. The Internet of Things (IoT) is a network that connects a variety of physical devices including home appliances, vehicles and other devices hosting electronics in them. Smart homes are a part of IoT. They can help to conserve energy by controlling lighting, heating and air-conditioning. They increase factor of safety and security exponentially. They are more comfortable to live in. They can cater to the requirements of individual family members in the home as well.

If you are keen on making your home a Smart Home, you will have to be ready to bear the cost as well. While these electronics come with a much higher price tag, you need not compromise on quality. While availing a home loan, do budget for this aspect as well. Your housing loan can help you find the best things in the market that can make your home a dream home.

Due Diligence and Smart Contracts

The legal process related to owning homes in India will undergo changes due to the introduction of blockchain technology which will ensure more transparency in the due diligence process. However, until this technology reaches an acceptable threshold you have to ensure the authenticity of the purchase of your home using the available means today. If you don’t, then you will face unwanted complications in setting your land and home records straight.

Thus, due diligence is a common feature of any home buying process.

Choice of Lender

Buying a home is a huge investment for you. You have to ensure the availability of funds to buy a home of your choosing. Most of you would often find a resource crunch and you would opt for availing a housing loan. You would want to choose a reliable lender such as Tata Capital to finance your homes, fully or partially, based on your creditworthiness.

Before you apply, check your eligibility for availing a home loan. You will need a CIBIL score while applying as this gives financial institutions more confidence on your repayment as well. Once you understand your eligibility, with a home loan calculator, you can check your EMI with the interest rate for your home loan.

These financial institutions like Tata Capital offer a home loan with various features including a simple application process, higher loan eligibility, competitive interest rates, balance transfer, home loan EMI calculator and choice of EMIs and tenures.

These are the common things that most of us look for while buying a house. However, in the end, your house becomes your home because of you and your family. Finding the right place, with the right space and amenities is just the start and with the right home loan, you can get to building your dream home.

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Monsoon can harm your house. Here's how to deal with its side-effects

Aug 23, 2018

It's been a while since monsoon has hit the cities. And while you did enjoy soaking up to initial showers which gave respite from the sweltering heat, the moisture in the air may have done a lot of harm to your houses. This may include leakages and seepages that can spoil your home interiors. Hence, it is essential to take measures right away rather than rush to fix the issues later when the damage is already done.

Here’s what you need to do to protect your home when it is raining cats and dogs outside:

Waterproof the walls

Enable waterproofing of the walls, both from inside and the outside. If you stay in an area where the rains are heavy and incessant, waterproof treatment and painting are a must. Thus, it is still not too late to waterproof your walls, that will save on repair cost and hassle.

Damp-proof cupboards

Rains create dampness, which can spoil your clothes and other things kept in cupboards. Keep camphor or neem leaves in your wooden almirah to get rid of the smell. You can also leave some cloves in the folds of your clothes to keep bugs away.

Overhaul the drains

If your drainage system is blocked, it can spell trouble. Excess rainwater might clog it further and cause foul smell and backflow. To make sure that the drainage system is working fine and the drain is clean, check it every week. Clogged water may also become a breeding ground for insects, causing diseases.

Check electrical wiring

Do not leave electrical wires unattended and unguarded. Short-circuits often happen in the heavy rains, which can be very dangerous. It also causes power failure. Look for faulty wires in the house, and make sure you promptly attend to anything that needs fixing.

Fix the cracks and gaps

If you have a crack in one of your walls or on the ceiling, it’s high time to seek professional help. Every gap must be filled and sealed with waterproof mortar even in the mid-monsoon. If you have noticed any seepage or leaks in the joints of rainwater pipes or other household plumbing, do the same treatment.

Take a home renovation loan

Ensure that any leaks, or any new cracks, etc are fixed; it will help you rest easy. If you are bothered about the renovation cost affecting your budget, don’t worry. Tata Capital offers a home renovation loan that’s tailor-made for your needs.

The loan offers relaxed eligibility criteria and low-interest rates. The tenure can be as long as 30 years, and disbursal is quick. You can opt for either fixed or flexible EMIs. Such a home loan can come in handy for a number of jobs, such as:

  • External renovation
  • Internal repair
  • New flooring
  • Maintenance
  • Remodelling and painting

You can take a loan amount starting from Rs 2 lakh and also avail of tax deduction up to Rs 30000 under section 24(B) of the Income Tax Act, 1961, on the interest payment.

So what are you waiting for? Make your comfy residence even more liveable with a home improvement loan from Tata Capital!

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How owning a house can give you the freedom to live

Aug 16, 2018

For any average Indian, having a roof of one’s own is an aspiration, but achieving it can be a mammoth task. Scraping for a down payment, ensuring a decent credit score, figuring out the mortgage specifics, getting paperwork in order, doing up the place once you get possession, dealing with taxes, bills, and other sundry expenses, the tasks on the list are endless. However, the indefatigable Indian will pursue and persist through all trials and tribulations because the benefits of owning a home outweighs the hardships.

If you too have been contemplating to take the big leap here are seven reasons that will aspire you to become a home owner

1. Capital appreciation

Limited real estate available to service a huge housing requirement ensures that the value of your home will only appreciate over the long term. Conversely, money spent on renting a place is a dead expense.

Over a 30-year period the value of a property is usually expected to double. If you are in a metro such as Mumbai, Delhi or Bangalore, that period could be as short as 10 to 15 years.

2. Asset building

Very few asset classes can give the kind of returns that real estate does. Owning a house gives you an opportunity to create further wealth or it can help you in times of crises.

You have the option of earning by renting out space in future, or selling it at a profit and reutilising the funds to move to a bigger or better place, or reallocating funds to other investments.

In times of crisis, you can always take a loan against your property to tide you over a situation and repay it over a period of time.

3. Certainty of expenses and investment

For most of us, investment planning tends to be ad hoc. Look at EMIs as a monthly investment rather than an expense. The fixed sum every month that goes towards building your roof ensures that you prepare and stick to a well-thought-out budget.

4. Freedom to make it your own

If you’ve lived in a rented place, you know that even driving a single nail in the wall requires the landlord’s permission. You can forget about ‘doing it up’ to your taste.

With your own home, you have the liberty of making changes as you please, whenever you please. Not just cosmetic changes, but even the option to redesign the space as long as you don’t compromise the structural integrity.

5. Privacy and surety of space

With a rented place, the equation is always lopsided in favour of the owner. You would have to entertain queries and visits as per their whim.

You may have to pay increasing rentals year-on-year. You may even be asked to vacate at short notice if the homeowner needs the space or finds better prospects.

All of these factors are eliminated when you step over to the other side and become a homeowner.

6. Tax benefits

The Income Tax Act provides for various deductions for homeowners to reduce their tax outflow on buying a home, especially if a first-time homeowner.

7. Retirement security

At the end of the day, you want to live on your own terms, without being dependant on anyone. Your home provides an income generating possibility with which you could easily enjoy your golden years with your loved ones.

Owning a home is not only a great milestone, but also considered a yardstick for success within the Indian community. Tata Capital understands and values the struggles you undergo on a daily basis and aims to provide the best support it can through flexible payment options, instant approvals, lower EMIs and doing away with prepayment penalties.

Tata Capital is just the partner that help you create more freedom in life and support you to realise your dreams of becoming a proud homeowner!

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