The ease of obtaining a home loan to purchase a house has struck a dilemma in most people’s mind. Is it better to buy a house or rent one? Although buying a house is a huge financial burden, does it make of for the rent paid over a long term?
Buying a house, although expensive, is a very good investment. History has taught us that real estate prices are bound to go up even if the realty market dips every now and then. The value of appreciation is well worth the initial financial burden that one must go through to purchase the house. However, one must keep a lot in mind before choosing to invest in a house, like the market rates, location of the property, etc. Buying a house by availing a home loan helps an individual attain tax benefits.
Renting a house may help an individual save on down payment for a house, EMI, etc., but the rent paid may be exhausting him/her financially depending on how long the individual has been renting a house. Rather, an individual could invest money that he may have for a down payment on mutual funds, PPF, or other such investments until he/she receives a sizeable return. This money can then be used to make a larger down payment which will then in turn help the individual save on interest while obtaining a home loan. However, in case of urban areas where prices of houses are extremely high, a case could be made for renting a house as opposed to buying one. Also, relocation would be easier in case of a rented house.
Benefits of Renting a House
Renting a house can help an individual potentially build a higher bankroll by investing the money he/she would have invested towards down payment of a house.
Renting a house is sometimes more effective in urban areas where property prices are high.
Relocation in case of a job change, etc. can be easier in case of a rented house.
Benefits of Owning a House
Owning a house gives an individual more freedom as he is not liable to an owner.
A house is an asset that acts as financial security to protect you and your family.
It is a good investment to own a house as it is bound to appreciate in the future.
Home loans can help you avail tax deductions, helping you save a sizeable amount of money.
The EMIs on home loans tend to remain stagnant throughout the tenure of the loan, while the rent payable increases every year.
Factors to Consider Before Making your Decision
Consider the possibility of you changing your locality
Use a EMI calculator and estimate if you will be able to afford a home loan
Buy vs Rent Calculator
Many online portals have buy vs rent calculator that accurately provides you the total expenses of buying a house or renting a house. All you have to do is enter basic details of the home loan, rent, etc., as requested by the portal and click on submit. The portal will then provide you with the total buying cost and total renting cost for a particular duration.
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I got home loan with DHFL FINANCIAL INSTITUTION . I am not happy with the services even the customer service response is not so good . The loan amount which they gave was good but they charge very high rate of interest . Overall it is fine experience .
I have housing loan from LIC, the interest is high. My property located in lucknow but I am staying in mumbai hence for the balance transfer its very difficult they need lots of loan documents. Without proper notification they increased the interest but for the reduction they have lots of procedure and I need to pay Rs.1000.
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1
DURGESH PRATAP SINGH
, mumbai
Reviewed on Apr 22, 2019
LIC HOUSING FINANCE has also offered me a home loan. The process was quick and I got the loan on time. The rate of interest is and there were processing charges as well both are very nominal compare to others in the market . The tenure period is 10 year and it is sufficient .
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0
UMENDER PAL DIXIT
, vadodara
Reviewed on Apr 21, 2019
I have SHAMRAO BANK i have took home loan from this bank . Their service is better, Overall the whole loan process was easy and hassle free. Only the rate of interest were high with this bank. The processing fee is nominal with this bank . And the loan amount is not satisfactory .
HDFC LIMITED is the bank where i have taken the housing loan the loan amount they have offered was good and satisfactory added on that the documentation process was simple and pretty simple documents. I got the loan within one day, the rate of interest was nominal.
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1
GIRISH SHANTHA KUMAR
, bangalore
Reviewed on Apr 20, 2019
I had taken a Home Loan from DHFL LTD a long time back and the loan is still running. The loan amount has been sufficient but the interest rate with them has been quite high, where they had not reduced the interest rate as well. The processing fee and charges which they had made has also been high when compared with the other banks.
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1
RAGHVENDRA PAL SINGH
, faridabad
Reviewed on Apr 20, 2019
My housing loan process was simple with HDFC Ltd, they took only 3 working days to verify and sanction the amount, they didn't ask any guarantor for my loan, but I feel the interest is bit higher, I took the amount of Rs. 5 lakhs for the duration of five years.
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1
SHRAVAN RACHAKONDA
, hyderabad
Reviewed on Apr 20, 2019
I have applied or the housing loan with the ICICI BANK the documentation process was simple and easy to get the loan they have given the 95% of value as a loan amount. The duration for repaying the loan is for 20 years and using from last 2 years. The rate of interest was 8.6% which was nominal.
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2
PANDIYARAJAN PANDIYARAJAN
, pune
Reviewed on Apr 19, 2019
I took my housing loan with LIC HOUSING FINANCE previously, They gave me sufficient loan amount based on the requirement, but i felt they have charged me high rate of interest and even they have charged me processing fee high, so i have done balance transfer to other bank.
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2
RAMANA KUMAR KOPPALA
, hyderabad
Reviewed on Apr 19, 2019
I did balance transfer from one bank to Bajaj finserv for housing loan, the loan amount was sufficient, but rate of interest i felt was less compare to other bank loan, the rate of interest they have charged me up to 8.85% which was nominal, everything is good but i did not like one thing ,like after doing balance transfer i came to know that it is mandatory to pay insurance for premium it use to get lock after paying insurance, i can not do in future balance transfer .
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2
RAMANA KUMAR KOPPALA
, hyderabad
Reviewed on Apr 19, 2019
I hold my housing loan with Indiabulls for an while. They have given me loan on time without any delay, their service was good. The process in getting loan was simple, i got loan on time. Their rate of interest was nominal, still this loan is running.
Last 4month back I took one home loan from HDFC Limited , but I am not satisfied with their rate of interest since it is little high , and loan amount is 30L I am satisfied with loan amount and and EMI amount is 25K and tenure is 25years , but their customer service is not much good ,and response not at a time.
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1
SIVAKUMAR ANNAMALAI
, chennai
Reviewed on Apr 19, 2019
I hold my housing loan with HDFC LIMITED for an while, their service is good, but not sure about the rate of interest like every 2-3 months they are increasing my limit up to 0.05% i need to check with the customer care regarding this, the loan amount was sufficient, they have not charged me processing fee.
I have previously used the housing loan with the INDIA INFOLINE HOUSING FINANCE LTD and transferred to another bank because the rate of interest was higher. They have offered the pre approved so taken. There are hidden charges applicable also it is floating rate of interest with this bank which was 32% which am not happy.
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1
NIVRUTTI INGAVALE
, mumbai
Reviewed on Apr 19, 2019
The documentation process was easy and simple with the HDFC LIMITED and housing loan was taken before few days. The rate of interest was lesser so transfered the loan with this bank. The duration is for 30 years to repay the loan. There is a pre closure option with this loan.
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2
NIVRUTTI INGAVALE
, mumbai
Reviewed on Apr 19, 2019
I am satisfied with loan amount of 8L with the rate of interest is 8.65% , EMI amount is 6769 rupees and tenure is 20years. It was taken last two years back from HDFC LIMITED and their overall service is good but I would like close this loan after 3 to 4 months.
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2
VINEET KUMAR SONU
, new delhi
Reviewed on Apr 17, 2019
i like your offer...t is the first time experience with the Bankbazaar.com and i have a good experience with this channel. I prefer using it through the mobile application as the application is simple and user friendly to access. The customer service is good.
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1
SANDEEP VASUDEV BANE
, mumbai
Reviewed on Apr 17, 2019
My home loan is with Axis Bank and the process to get the loan is good. The disbursement happened on time and the customer support and response is good. The documentation was also a smooth process. The rate of interest and processing charges is normal.
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1
SAJI GOPINATH PILLAI
, chennai
Reviewed on Apr 17, 2019
I took housing loan with IDBI bank for an while, the loan amount which they have given me was good, it was sufficient based on my requirement, the rate of interest and their processing fee which they have charged me was nominal, AS it is government bank their service is not that up to the mark, but the interest rate was less so i applied.
LIC housing is good but interest is the concern, I took the amount Rs. 20 lakhs for 20 years. They quoted 10.8% its a floating one, they didn't revise the interest as per the RBI guideline. But they do have balance transfer, part payment and other options.
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1
PRASADKUMAR KUMAR VENKATESAKUMAR
, chennai
Reviewed on Apr 17, 2019
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