More and more young, working professionals in their twenties are turning homeowners. Banking experts reiterate that there is a continual growth of working professionals who are young, turning home buyers at an early stage in their careers while opting for home loans to fund their purchase. It is indeed a great investment with tax benefits.

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Young Homeowners & Easy Home Loans
By Century Real Estate February 17, 2018

More and more young, working professionals in their twenties are turning homeowners. Banking experts reiterate that there is a continual growth of working professionals who are young, turning home buyers at an early stage in their careers while opting for home loans to fund their purchase. It is indeed a great investment with tax benefits.

Also, as most of us feel the need to invest our disposal income in the market, the most dependable investment that one can bank on is investing in an apartment or a plot. Majority of the home buyers are investors who invest in real estate for the appreciation of the property, but a percentage who start very young, invest in properties for a consistent cash flow through the rents their apartments can earn monthly.

Here are excerpts from our conversation with a banking expert from one of India’s largest Banking & Financial Services:

What is the eligibility of an applicant when applying for a Home Loan?

Banks evaluate the eligibility of applicants/borrowers, their repaying capacity for home loans, & most importantly, the monthly salary or their yearly income is considered while approving their Home Loan request.

What are the documents required by an applicant for applying for Home Loans?

Individual customer’s KYC – which is Know Your Customer is required to apply for home loans, this includes their identity proof and address proof, along with their income eligibility – their salary or income tax returns and from the project aspect, anytime an applicant applies for a loan for a particular chosen property, the bank verifies if the said property is approved by the bank where the bank would have given the land documents to a lawyer and as per the rules & policies of the state, the property will be constructed according to the building plan.

How would you check or verify the property that the applicant has applied for?

In case a particular project has approached the bank for the first time and in cases where the project hasn’t been approved, the bank requests for all documents which include their sale deed, their earlier linked documents, their Khata certificate, encumbrance certificate & based on that, the bank takes a legal opinion, likewise, they will also take the valuation of the property.

How has GST & RERA impacted the consumer behavior in terms of Home Loans & Home Buying? 

After the introduction of RERA & GST, from the consumer’s point of view & from the bank’s point of view, there has not been any change as such, we as the banking sector have not seen any fluctuation. But now, there are more stringent rules & regulations from the point of view of the consumers that the builders will be abiding by. So, the bank now seeks a RERA registration certificate. Earlier there was a service tax aspect now that is replaced by GST. Consumers that way are not impacted.

Please shed light on the consumer trends you have witnessed over the past 2 decades elaborating the home buyers’ pattern?

These days, everyone dreams to own a property – be it an independent house or an apartment. More & more customers are approaching the bank & applying for home loans. We see a great percentage of younger generation turning homeowners. Earlier, banks witnessed people investing in a home with their retirement or terminal benefits through which they would construct a house. Now, since people have more disposable income and as a result of tax benefits that they are eligible, more people are opting for home loans. And since Bangalore is the IT hub of India and the most happening cosmopolitan, people across the country make Bangalore their base and thus opt for an independent apartment or a house.

You can check the Home Loan Eligibility criteria in detail & the factors that decide an applicant’s eligibility for home loans in India. Click here to read 

*Disclaimer: This is a compilation of inputs from experts as credited above. Please contact your banking or financial services for further and more accurate information

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