Everyone dreams of a better home and a better life. That is the most common reason for buying a home and using the housing finance to do it. But, several people buy properties for different reasons. Then they select different housing finance companies in India for home loan. You cannot escape the fact. In the end, you need to make this decision for the right reasons. It is especially applicable to home because home loan is not a small deal. Home loans in India are expensive. Even if you have the best credit score, suitable job and the best home loan in India, your circumstances may not remain the same for next 15 to 30 years. No borrower can guarantee it. So, taking the home loan for right reasons makes it all worthwhile. You may have few ups and downs in the process. But, it will be justified if you have the right reasons for your course of action.

Reason#1 – Purchase with rising prices

People will always need to buy a property for personal accommodation. But it is not easy to buy a property if the prices in the market or a specific locality are rising. You need to select right time and property to buy it within your means. Otherwise, the principal cost of the housing loan will be too high for your monthly income. But, prices are also affected by economy, real estate, neighbourhood and infrastructure developments. Most people cannot find an affordable home and an economical housing loan within the time frame if the prices are too high.

Reason#2 – Income tax rebate

This is one of the popular reasons to purchase property among people with sufficient financial means. A lot of people believe that a purchase of property might allow people to own an expensive asset and enjoy income tax exemption too. The Indian income tax laws do allow Indian residents to do so. So, it is a choice available. But, it may not benefit you as a borrower. So, you will need to keep it into the mind before accepting the house loan agreement.

Reason#3 – Unreasonably high home loan rates

Housing finance companies cannot stop you from buying an expensive property. It is an individual choice after all. Buying a property with the high interest rate you cannot afford is also your choice. But, it is not an advisable choice. So, you must ensure that the home loan agreement is an economical and a profitable one. Otherwise, you will have to pay a huge amount as the interest over a long period of time.

So, avoid these wrong reasons to buy a property with a housing finance. Though, housing finance in India is very competitive, you do need to protect for your interest and select a home and a home loan for right reasons.