Lower interest rates, low stamp duty payments, longer repayment tenors, high-value, and more: here’s what women should know before taking home loans and why it’s smart, beneficial idea for them.
- Buying a house is quite an important decision and life-changing decision. Not just that, it requires in-depth research on the current market patterns and trends in the real estate market so that one arrives at an informed decision, as buying a house requires considerable financial resources. Sometimes, we tend to make these decisions without doing the homework such as studying the current interest rates and choosing which one works best for us. Well, the good news for women is that there is a common perception that women are more trustworthy and reliable as lenders which is why banks often encourage women to purchase high-value assets. Additionally, as an incentive, banks provide a lower interest rate on the home loan which makes it cheaper and a more attractive deal for women to start purchasing property in new projects in Mumbai.
- To engage more women to start buying property, the government has launched several schemes in the market, aside from lowering the property registration charges, to act as incentives. There are schemes launched by the government to incentivize women to purchase a property like the PMAY or the Pradhan Mantri Awas Yojana, which offers you an interest subsidy of 2.67 lakhs. This has acted as a catalyst for more and more women to start buying their own homes as is evident from the 6% rise in women homeowners. There are also additional tax benefits of registering a home in a woman’s name as you can get up to 1.5 lakh in extra interest deduction if the house is self-occupied. It can also work if the house is vacant at the moment. Additionally, if the property is rented out and is registered under the name of a woman, she can claim the total interest payable towards the home as a deduction.
- Stamp duty charges are reduced by 1-2% if the house is to be registered in the woman’s name. This goes a long way in reducing the costs related to purchasing a house, as this 2% is a fraction of the entire property’s market value which is quite a significant amount. As a woman, you can also get tax benefits and reductions. In case you don’t know how to find stamp duty charges on the property you are buying, you can simply use our stamp duty calculator.
- By increasing the tenure of her home loan up to 25 years, a woman can opt for cheaper EMIs and a reduced burden on their finances. Additionally, there are no charges related to pre-payment, making purchasing a property an attractive deal for women.
- Women can be easily eligible to apply for home loans for higher values ranging from 30 lakhs to 3.5 crores as banks make sanctions to attract women borrowers. This simple eligibility test makes home-buying an attractive option for women.