A home loan is probably the biggest loan that most people ever take. Not only in terms of the loan amount, but also tenures, which can easily be of 15 years or more. And the total final amount that one ends up paying by the time the loan ends, can be double of what was borrowed. But, a home loan is among the cheapest loans available, and most often, it is the only way a person can buy a house. A home loan is called a ‘good’ loan because it helps you acquire a tangible asset that appreciates over the long term.
A point that many to-be borrowers ask is should I rent or should I buy, especially when the amount being paid as rent seems heavy. One of the factors to consider here is whether you want to live in that house or it’s for investment. It makes sense to buy a house if you plan to live in it. This is also the reason, apart from the fact that many housing projects in India continue to be delayed by many years, why financial advisers say that one should buy a ready-to-move-in house.
If you are looking at it as an investment, then one must look at the compounded annual returns the asset can give, and the risk involved, just as you would with any other asset class.
But if the reason is to live in the house, then any time is a good time to buy. Here’s a look at the latest home loan interest rates.