Mysore, the cultural capital of Karnataka, enjoys the distinction of being one of the most beautiful cities in India. Known for its rich culture, traditions & heritage, it is popularly called the ‘city of palaces’. While it brazes for modernity, Mysore also has a quaint, old-world charm that makes it the perfect place to settle down with your family. Banks & NBFCs now offer the best home loans in Mysore to fulfil your dreams of making the city your home.
A significant advantage of Mysore is its proximity to Bangalore, the country’s IT capital. The upcoming Bangalore-Mysore expressway would bring them much closer and is poised to be a game-changer that can significantly change the city’s fortunes. Mysore offers top-notch infrastructure and good quality of life at extremely affordable prices. The salubrious weather is the icing on the cake. Apply for a home loan in Mysore and invest in a promising future.
Types of Home Loans in Mysore
Home loans are not just offered for buying or constructing a house. Different types of home loans are now available in Mysore. Apart from loans for purchasing or building a house, home loans can also be availed for the following reasons.
- Home Improvement Loans: These loans are granted for the purposes of renovation, redesigning, refurnishing, or to carry out significant repairs to your house
- Home Extension Loans: If you need extra rooms or an extra floor to accommodate your growing family, you can apply for a home extension loan
- Land Purchase Loans: The best home loan lenders in Mysore also offer loans to purchase residential land in this charming city. You can buy land to construct a house later or just hold it as an investment to reap rich dividends in the future.
- NRI Home Loans: If you are an NRI desiring to buy a property or renovate an old house in your hometown Mysore, you can avail of special offers from lenders
- Home Loan Balance Transfer: You can also transfer your current home loan to another lending institution to get the benefit of lower interest rates or a top-up loan facility
- Bridge Loans: These loans are helpful to meet short-term requirements. If you plan to buy a new home by selling an old one, bridge loans can help you make the down payment till the old house is sold.
Home Loan Interest Rates in Mysore
The Mysore home loan rates (floating rate) are typically in the range of 8.25-10.50% p.a. Fixed interest rate housing loans are not very popular as they carry a much higher rate. Interest rates can vary based on the loan amount, tenure, and creditworthiness of the applicants. Long-duration and big-ticket home loans always carry higher interest rates.
If you have a CIBIL score of 800+, you can get special concessions. Lenders consider factors like your age, income, occupation, etc., to assess your risk profile. As women borrowers are granted interest rate concessions, they can be added as co-applicants if they have an independent source of income.
Tips for Efficient Management of Home Loans
Mortgage loans in Mysore are long-term commitments that can be spread over 20-25 years. Once you apply and get the loan sanctioned, the next most significant challenge is to manage the loan EMIs. Here are some tips to help you become an intelligent borrower.
- Study and Research the Market & Products
Home loan EMIs can upset your monthly budget if you choose a scheme that is not suitable to your situation and needs. Check the lowest rate offered in the market and enquire with the lender about the nitty-gritty of the scheme. See if you are eligible for some special concessions owing to your profile and relationship with the lender. If the existing Mysore home loan rates are higher, consider the home loan balance transfer option to move to another lender who is ready to offer a lower rate. Do not forget to check the foreclosure charges and the processing fees.
- Make a Higher Downpayment
Most banks now offer home loans up to 90% of the property’s value. But a higher loan amount only increases the EMI or the tenure (or both). If you want to lessen the burden and end the loan faster, you have to make a higher downpayment. You can gather additional resources for a downpayment by closing a low-yielding bank FD or any other old investment. A 25-30% downpayment would be an ideal thing to have.
- Choose Shorter Loan Tenures
The best home loan lenders in Mysore offer housing loans for a maximum duration of 30 years. But the interest outgo will be much higher in a long-duration loan. Though the EMIs are higher when you opt for a shorter tenure, you get to repay & close the loan account faster with a lower interest burden. A loan tenure of 15-20 years should be fine.
- Consider Prepayments on Your Home Loan
You can also make prepayments when you receive a bonus, when an FD matures, or when you receive gifts/inheritance from your family. This immediately reduces the outstanding loan amount and the EMI you pay every month. With regular prepayments, you can end the loan earlier and become free from debt obligations.
- Take Advantage of all the Tax Benefits
The Income Tax Act offers multiple avenues to save taxes on a mortgage loan in Mysore. Section 80C gives a tax deduction of up to Rs.1.50 lakh on repayment of principal. Section 24(b) provides tax rebates of up to Rs.2 lakh on interest payments. Section 80EEA offers an additional tax deduction of up to Rs.1.50 lakh for first-time homebuyers. These tax benefits can help you save a few lakhs over the loan tenure.
- Avoid Defaults & Delays in Loan Repayment
Make sure that you pay the EMIs without fail on or before the due date every month. Any delay or default can lead to stiff penalties & charges. It can also affect your credit rating adversely, and you may find it tough to get any loan in the future.
The best home loans in Mysore will indeed be the best if you know how to manage it efficiently. Debt management is an integral part of financial planning. It is vital to your overall financial well-being as it can save you a considerable sum in the long run.