Things To Remind in Mind While Opting For Housing Loan

Somepeople dream to have a house in their lifetime! They treat owning a house is a life time achievement! But due to financial commitments(Children education, their marriages), they are unable to fulfil their dream house!

Should they loose hopes on owning a house?No, Not at all! If they follow some financial discipline and choose the right path to financial freedom, they can easily avail housing loan from banks.

But before opting for loan, they should remind some financial principles in mind! They are-

  • Checking Their Eligibility– Before opting for housing loan, you should check your income levels and financial responsibilities. After confirming your income sources and financial burden according to his lifestyle, he should plan the duration of the home loan period. He should consider his age and the loan repayment capacity before opting for home loan
  • Checking online EMI Calculators to have a clear idea– Before opting for home loan, check estimated EMI to be paid using online EMI calculators. By entering the loan amount and tenure, you will get a rough idea on EMI to be paid.
  • Compare Home Loan Interest Rates online– In todays digital world, every bank/financial institution owns a website which provides detailed information on the loans and interest rates. Compare them and select one which you would think fit to your financial condition.
  • Check Aggregator Websites for comparing Housing Loan interest rates at a glance-Some aggregator websites like,, provides detailed information on interest rates of all financial institutions at a glance. Make use of them and decide
  • Arrange your down payment before opting for housing loan– Generally banks issue 80-90% of the total property value. Remaining amount would be beared by the aspirant, as it would be made available as down-payment before taking a loan.
  • Check your EMI value– According to the financial experts, Your EMI should not exceed 40-50% of the take-home salary. Make sure your EMI’s should be below that limit. If your EMI is less than 50% of your take home salary, then you will be comfortable to repay the housing loan on-time.
  • Be Prepared with needed Financial Documents in advance- Generally banks asks for last 3 Years IT Returns. You should be ready with these

Besides this banks asks for 3 years balance sheet, bank statement up to 6 months and GST Returns statement for businessmen while for salaried employees banks asks for 3 Years IT Returns along with Form 16 and the last 6 months bank a/c statement.

You should keep all the above documents in handy!

Finally Purchasing a house requires lakhs of money! You should be extremely careful while selecting the bank and the interest rates. Even a small decline in interest rates would save you thousands in the long run. So select bank with lowest interest rate but don’t compromise on the quality of the service bank offers. You should keep this in mind!

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