First-Time Home Buyers Benefits

Buying a home is one of the most beautiful dreams that many people live for. It takes a lifetime for an average individual to achieve this milestone and, therefore, you must be extremely cautious while making a home purchase.

• Know your budget

• Be sure of what you want, like the size of the house, number of rooms, its location, parking facility, amenities., etc. You should also be specific about the type of house like an apartment, a pent-house, a bungalow, etc.

• Find an agent

• Take a tour of the neighbourhood for every option

• Calculate the average cost of utilities for the properties you have shortlisted

• Look for multiple options before confirming one

• Ensure that you are dealing with a reputed builder

• Analyze if the home that you are planning to buy is future-proof

• Take a home loan for purchasing your dream property

As a first-time home buyer, you are eligible to receive multiple benefits on your home loan like tax benefits, minimal or zero down payment features, etc.

• Relief on interest rates: As a first-time home buyer, you can enjoy the following deductions on interest rates.
• Under Section 80C, upon repaying the principal amount of the home loan, you are eligible to claim a tax benefit of up to ₹1.5 lacs. 
• As per Section 24, upon repaying the interest amount on the home loan, you are eligible to claim a tax benefit of up to ₹2 lacs. 
• You can also claim an additional tax benefit of ₹50,000 upon the repayment of the interest amount on the loan. 
• Relief on GST: If you have purchased your home using the CLSS (Credit-Linked Subsidy Scheme) under the PMAY (Pradhan Mantri Awas Yojna), then you are required to pay a GST of 8% instead of 12%. You can also claim an additional tax benefit of up to ₹2.7 lacs if your family income does not exceed ₹18 lacs p.a.
• Relief on subsidy slabs: If the tenure of your home loan ranges between 15 and 20 years, then you are also eligible for an interest subsidy. You will receive a 4% subsidy if your income is ₹12 lacs and the principal amount is ₹9 lacs and a 3% subsidy if your income is ₹18 lacs and the principal amount is ₹12 lacs.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.