2017 is surely the best year to make your dream home a reality.
After a favourable Union Budget, here is another good news for the first-time homebuyers. Government has announced changes in the home loan interest subsidy slabs to spur the real estate market.
As per the new slabs, if you earn Rs 18 lac per annum, your first house will cost you Rs 2.4 lacs less as you will get subsidy on a part of your home loan interest from the government. This subsidy was earlier available to only those earning up to Rs 6 lac per annum. This progressive change in slabs will encourage more middle-class individuals to buy their dream home.
The slabs will apply to loans with tenure of up to 20 years, as against the limit of 15 years now.
Homebuyers will get subsidy benefits according to the income brackets they fall in-
Those earning less than 6 lacs per annum will get subsidy of 6.5% on the principal amount of Rs 6 lacs, even if the loan is for a higher amount. For example, if the loan is for Rs 15 lacs at the rate of 9%, you will have to pay interest at 2.5% on 6 lacs, and 9% on the remaining 9 lacs.
Those earning up to Rs 12 lac per annum will get subsidy of 4% on a principal amount of Rs 9 lacs, regardless of the total loan amount.
Those earning up to Rs 18 lac per annum will get 3% subsidy on principal component of Rs 12 lacs.
Assuming an average interest rate of 9% for a 20-year loan, net benefit to all categories is 2.4 lacs on an average. This benefit is in addition to what you will get under Pradhan Mantri Awas Yojna (PMAY). Such subsidies are planned and disbursed by National Housing Bank (NHB) and HUDCO.
Modi’s scheme of ‘Housing for All by 2022’ is set to be a success with such benefits and subsidies offered to the first time homebuyers. Not only lower income group, but the middle class buyers are also given due attention.
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