First Time Home buyers Guide : Tips and Advice

Home Loan, Home Loan EMI Calculator

What is your idea of a dream house? A big lawn, a grand chandelier in the living room, a personal pool? Or maybe you like minimalistic stuff – a bookshelf, a few bean bags and an espresso machine in your humble studio apartment. Irrespective of the average being’s taste, it is near impossible for one to own a house without getting a home loan first (Unless BitcoinCash)

Getting a home loan could be one of the biggest decisions of your life. Not just because of the money factor, but also the amount of time that you commit for repayment, home loan EMI calculator which is usually around 15-20 years (way longer than most of our relationships!).

Your EMI (Equated Monthly Instalments) is calculated depending upon the amount that you are willing to borrow and the kind of home loan that you are looking at. There are basically two categories of home loans, based on the kind of interest package that you go with. These are Floating interest rate (where interest rate keeps changing as per RBI rulings) and Base interest rate (which remains the same throughout the repayment period). The RBI fixes base rates for banks.

Home Loan, Home Loan EMI Calculator

Important: The latest RBI Policy announced a cut in Statutory Liquidity Ratio (SLR) for banks, and hence one can expect interest rates on home loans to drop. It is advisable to go for a floating rate charge if you are going to take a loan anytime soon.

Many people worry that their borrowed principal loan amount does not go down in the first few years despite regular payments. Usually, EMI that you pay will go towards payment of interest. Over the years, the proportion of interest decreases and the principal is paid off.

There could be many more questions and challenges that you might face in the home loan game. We have curated some important tips that might help you get through the conundrum.

Home Loan, Home Loan EMI Calculator

Home Loan tips

  1. 1 lakh deduction for first-time home buyers for a loan up to 25 lakh
  2. Spread out your payments towards interest on home loan. There is a tax benefit of up to 1.5 lakh rupees on payment towards interest
  3. You cannot borrow any amount you like. These days, a person’s home loan amount is determined by their CIBIL score, which can be availed for free on many platforms online. All you need to do is put in some basic information.
  4. A great way to compare all available home loan options online.
  5. There are many online Home Loan EMI Calculators available online on all major home loan websites. These calculate EMI based on one’s loan amount, tenure and other details
  6. You always have the option of switching to a bank offering a lower rate by paying a small fee to your current bank.

Now that you have been informed, you are one step closer to that dream view from your bedroom window. After all, whatever the mind can conceive, it can achieve!


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