The first step towards your dream home
Before you start browsing ‘what is the best Home Loan in India’ or even ‘which bank is best for Home Loan transfer,’ there’s one important step you must take – assessing your financial situation.
Knowing your financial limits will prevent you from overstretching and getting into debt. You can determine the ideal Home Loan amount and tenure, ensuring that your equated monthly instalment (EMI) fits comfortably within your budget.
To assess your financial situation –
- Calculate your monthly income from all sources
- Make a detailed list of your monthly expenses
- Assess your current savings and investments
- Factor in potential future expenses, if any
This would show you how much you can contribute towards the down payment and the EMI you can comfortably pay. For example, your monthly income is ₹50,000, and your monthly expenses are ₹30,000. After considering your savings and debts, you can comfortably pay ₹15,000 per month towards a Home Loan.
Comparing interest rates and loan features
Interest rates determine the total cost of your Home Loan. Lower interest rates can result in lower monthly payments and a shorter loan term. Moreover, even a slight difference in interest rates can lead to substantial savings or additional costs over the loan tenure.