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Home Buying Tips: Should you buy a home early in your life?


Home and dreams are the two sides of the same coin. People dream of having shelters, and home allows people to live out many dreams. Although everyone dreams of owning a house, very few can fulfil this dream. This article is for you if you dream about a house but do not have the resources required to materialise it.

Scroll down to find out how a housing or home loan can help you to become the proud owner of your abode early in life. 

What is a Home Loan?

A home loan is a type of loan offered by housing finance companies to borrowers for construction or purchase of a house. The borrower repays the loan and the interest through equated monthly instalments for a pre-determined tenure. 

What are The Types of Home Loans?

housing loan can be of the following types:

1. Home Purchase Loan

 2. Home Improvement Loan

 3. Home Construction Loan

 4. Land Purchase Loan

 5. Home Extension Loan

With so many home loan options, it is easy to get confused. Read on to know how a housing loan can fulfil your dream of owning a house.

1. Tax Benefits

Housing loan is the reason why young professionals prefer to buy a new house.

The EMI you have to pay on a home loan has two parts – principal and interest. Some provisions of the Income Tax Act apply to the principal component and some to the interest component.

Under Section 80C, you may claim tax deductions on principal repayment of up to Rs. 1.5 lakh. The upper limit includes stamp duty and other fees, and charges. But, if you avail of this exemption, you cannot sell the property before five years from the date of purchase.

If you are a first-time homebuyer, then the provisions of Section 80EE can provide you with tax benefits of up to Rs. 50,000. However, to claim deductions under the provisions of this section, your loan amount should be lesser than Rs. 35 lakh and the property’s market value should not exceed Rs. 50 lakh. 

2. Home Loan Eligibility

The simple eligibility criteria of a home loan make it easy for young professionals to take advantage of the benefits.

A housing loan repayment tenure can extend up to 30 years. However, your age must be less than 65-70 years at the time of the maturity of the loan. It is dependent on the lender’s terms. A young professional who applies for a housing loan early can avail of a longer repayment period and attractive interest rates.

The other factors that decide your eligibility for a home loan include the income threshold, age, educational qualifications, and property status.

3. Loan Amount

Your eligibility for the home loan amount depends on multiple factors like credit score, repayment tenure, monthly income, monthly liabilities, status, and location of the property.

Generally, lenders provide a loan amount of up to 90% of the property’s market value for loans below Rs. 30 lakh, 80% up to Rs. 75 lakh, and 75% above 75 lakh. 


For a young professional, safety and security are extremely important in life. You can check your EMI with a Home loan EMI calculator. A housing loan helps to fulfill your dreams safely and securely. Make sure to do your research before you finalize a home loan. 

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