Buying a new home in the post-pandemic era is a decision that needs to be evaluated across several factors. While some might recommend waiting for a few months before considering a home loan, there are a few experts who believe this to be the perfect time for purchasing a new home, regardless of the lingering financial threats.
Home buying indulgences cannot be evaluated as black or white, as there is a grey space that takes every factor into account. Although financial well-being or lack thereof is the most important aspect to consider before you can apply for home loan in the post-pandemic era, lower rates associated with real-estate establishments and the competitive home loan rates should also be factored in.
Getting a home loan during the Covid-crisis
Lower Interest Rates
The economic slowdown has negatively impacted the developers who aren’t getting the requisite liquidity to complete the projects. To combat these challenges, the RBI has effectively slashed the repo rates. This, in turn, comes as good news for the prospective home buyers and even the developers. As banks would be offering home loans at lower interest rates, more approved applications will also make the developers happy.
Lower EMIs
In case you plan on opting for a repo-linked home loan, it is necessary to check for the competitive EMI structuring using the house loan calculator. While the lower interest rates might look insignificant to start with, they can have a major impact on the total payable sum, especially in the long run. Moreover, even the EMIs get a decent cut provided you stay away from the MCLR-centric home loans.
Higher Discounts
As developers are finding it hard to get hold of clients, they are more than willing to give sizable discounts on the purchases. However, if and when the situation starts getting better, you might have to let go of the discounts, which are usually provided at the developer’s discretion.
Financial Discipline
In case you apply for home loan in the post-covid19 era by factoring in every aspect of your financial well-being, you might be at an advantageous position when things start getting back to normal. A new house is more like an investment for the future, and nothing could be better than getting into one, especially when the financial crisis is evident.
Better Financial Stability
As offered by banks and NBFCs, lower interest rates can have a major bearing on the total payable interest. Besides, if you can procure a home loan during the crisis, the EMIs will obviously be on the lower side, helping with short-term financial stability. Moreover, if you can foreclose the loan after a few years, even the long-term financial stability is taken care of.
While these are some of the reasons to opt for a home loan during the crisis, it is still important to gauge your existing financial stead before taking the final decision.
