A "low interest" loan shouldn't mean you have very little interest in paying it back!
  • Is it Better to Buy a House or Rent One?

    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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    Home Loan Reviews

    • Canara Bank Home Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I had applied for a home loan with CANARA BANK and to get my application processed it has not took a long time. There was no delay. The interest rates moderate because they keep on changing the rates . Customer service is very good they are very professional .
      Was this review helpful? 0
      , ghaziabad
      Reviewed on May 22, 2019
    • HDFC Limited Home Loan
      "Good home loan service"
      0.5 5.0/5 "Blown Away!"
      Taken my home loan from HDFC ltd. Bought my loan 10 years back. I had a salary account with them, hence i have selected this bank. I have bought the loan amount of Rs. 5.50 lakhs. I am paying the EMI amount of Rs. 6800. I have selected the tenure period of 20 years. I have paid the processing fee of Rs. 6000.
      Was this review helpful? 0
      , vadodara
      Reviewed on May 22, 2019
    • HDFC Limited Home Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I have taken Home loan through HDFC LTD which i have directly applied with bank The .rate of interest and the processing fee was nominal .I have applied for the loan amount of 25lakhs for the tenure of 12years ,still loan is active ,The agent gave all the information about the loan process .
      Was this review helpful? 0
      , bangalore
      Reviewed on May 21, 2019
    • HDFC Limited Home Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I have taken a home loan in HDFC LTD. The process was done on smooth and received a loan amount 12 lakhs for the duration of 10years. The rate of interest and processing fee is nominal in this bank.The good which I would like to share is documentation process was done on easy.
      Was this review helpful? 0
      , chennai
      Reviewed on May 21, 2019
    • review Home Loan
      "Average Service"
      0.5 3.0/5 "Satisfactory"
      I had taken my Home loan from GIC HOUSING FINANCE LTD and the process in getting the loan was pretty much simple where it just took two weeks for the disbursement of the loan amount. The interest rate with them is also pretty good but after getting loan the response from their end has not been that good. They don't have a mobile application or a website to do things online.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 21, 2019
    • HDFC Limited Home Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I have taken a home loan in HDFC bank for more than a year. As per my expectation I received a loan amount for the duration of 15 years. The customer service is good and support on time. The rate of interest is good and low when compare to other bank. The fee also applicable and nominal.
      Was this review helpful? 0
      , indore
      Reviewed on May 21, 2019
    • review Home Loan
      "Need to decrease charges"
      0.5 3.0/5 "Satisfactory"
      I am using the home loan with GIC HOUSING FINANCE LTD since from last last year, as per my expectation I received a loan amount for the duration of 24 years. The rate of interest is high when compare to other.The fee is nominal. On time I received a loan amount.
      Was this review helpful? 0
      , new delhi
      Reviewed on May 20, 2019
    • ASPIRE HOME FINANCE CORPORATION LIMITED Home Loan
      "Best Service"
      0.5 2.0/5 "Expected more"
      I have taken Home loan through Aspire Home Finance corportation Limited .I have applied for the loan amount of 4 lakh for the tenure of 10years ,The rate of interest and processing fee was high ,loan amount got sanctioned on time it was sufficient,The agent gave all the relevant details and also submitted documents on time .
      Was this review helpful? 0
      , thane
      Reviewed on May 20, 2019
    • HDFC Limited Home Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I have taken Home loan through HDFC Ltd through Online .The service is good so far i have taken the loan amount of 50lakhs for the tenure is 30yearrs ,still the loan is active ,The rate of interest and processing fee was nominal ,I have submitted documents and the agent gave all information about the loan process .The agent was good ,loan amount got on time,it was sufficient as welll.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 20, 2019
    • LIC Housing Home Loan
      "Percentage should be reduced"
      0.5 3.0/5 "Satisfactory"
      I have housing loan from LIC, as per my experience the interest rate is huge as compared to others. In 2014 I took the loan amount around Rs 30 lakhs, the agent came to my place and completed the documentation process, it would be if they reduce the interest.
      Was this review helpful? 0
      , lucknow
      Reviewed on May 20, 2019
    • DHFL Home Loan
      "Interest rate should be reduced"
      0.5 3.0/5 "Satisfactory"
      Taken my housing loan from DHFL. So far i never had a chance to speak with their call centre people. When i had sanctioned my loan the interest was 10.35% which is a floating interest rate. They have charged me some processing fee. Total tenure period of the loan is 20 years. Within a month, they have sanctioned the loan. Initially, sanctioned the loan was a quick enough but disbursing the amount is took some time. The loan is easy to get sanctioned.
      Was this review helpful? 0
      , thane
      Reviewed on May 20, 2019
    • HDFC Limited Home Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been taken my housing loan with HDFC LIMITED a while ago, the loan amount which they have given to me was sufficient, the rate of interest they have charged me was sufficient, the processing fee they have charged me up to 8000 which was minimal, still this loan is running, so far i did not face any issue.
      Was this review helpful? 0
      , gurgaon
      Reviewed on May 20, 2019
    • SBI Home Loan
      "Good"
      0.5 5.0/5 "Blown Away!"
      I have taken a home loan in SBI bank for more than a year. As per my expectation I received a loan amount for the duration of 15 years. The rate of interest was nominal. Only the drawback which I felt was need to visit often to office for further process.
      Was this review helpful? 0
      , coimbatore
      Reviewed on May 20, 2019
    • SBI Home Loan
      "Good Service"
      0.5 4.0/5 "Great!"
      I have taken a home loan STATE BANK OF INDIA for more than one year. As per expectation I received a loan amount as per my expectation for the tenure of twenty years. The rate of interest and processing fee is nominal when compare to other banks.
      Was this review helpful? 0
      , noida
      Reviewed on May 20, 2019
    • Indiabulls Home Loan
      "Best service"
      0.5 5.0/5 "Blown Away!"
      My housing loan was taken with INDIA BULLS , the services was good and process was smooth , i receive the loan on time . The tenure period is sufficent and they charge fine rate of interest which is nominal in the market . They gave option of preclosere and processing fee is nominal
      Was this review helpful? 0
      , kolkata
      Reviewed on May 20, 2019
    • Punjab National Bank Home Loan
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I have taken Home loan through Punjab National Bank directly applied ,rate of interest and the processing fee was nominal ,loan amt was 8 lakhs for the tenure of 12years ,the loan amount on time ,loan amount was sufficient ,documents submitted no issues ,still the loan is on process.
      Was this review helpful? 0
      , new delhi
      Reviewed on May 20, 2019
    • LIC Housing Home Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      The experience of applying the home loan with the LIC HOUSING FINANCE is very good and i had a good experience with this bank. i got the loan amount very good also the rate of interest was satisfactory with this loan. I am using from last 2 years the duration for repaying the loan is for 12 years with this loan.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 19, 2019
    • LIC Housing Home Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      I am using the home loan with the LIC HOUSING FINANCE since from last 2 years the loan amount given was satisfactory also the documentation process was simple and easy to get the loan with this bank. the rate of interest was nominal which is satisfactory in this loan.
      Was this review helpful? 1
      , hyderabad
      Reviewed on May 19, 2019
    • LIC Housing Home Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      I have applied for the home loan with the LIC HOUSING FINANCE where using it since fro last 10 years and the duration for repaying the loan is for 15 years. The loan amount was nominal also the rate of interest was nominal as per the market value.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 19, 2019
    • United Bank Home Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      The documentation process was simple and easy to get the home loan with the UNITED BANK OF INDIA. The loan amount was good and the rate of interest was 10% which was fixed and now changed into flexible rate of interest was applicable which is higher.
      Was this review helpful? 0
      , kolkata
      Reviewed on May 19, 2019
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