Banker and Developers take necessary initiative to boost sales in Real Estate.

Bankers and Developers on same wavelength to make Real Estate a better place! The rate of interest may now vary between 15 and 35 basis points across the banking industry can fuel the demand which is already being stoked by the government’s programmes such as Smart Cities, Affordable Housing and Digital India with a focus on reducing the inflows into cities which are bursting at the seams.

With the reduction in interest rates by the banks has acted like a spark that the real estate market had been waiting for, with Home Loan interest rates on a slope, lenders are now more optimistic. SBI and Housing Development Finance Co which have shed their reluctance in passing on the Reserve Bank of India’s past rate cut.

New policies and initiative taken by the RBI and Indian government together like reducing the interest rates in Home Loan as well as building 100 smart cities are seen as a major step in boosting the stagnant real estate sector.

As per the I-T law, the buyer of an immovable property worth Rs 50 lakh or more is required to deduct (and deposit) withholding tax at the rate of 1% from the consideration payable to the seller. In case of failure to comply with the provisions, interest and penalty are imposed on the buyer.

Buying an apartment and your TDS formalities are thus, if the purchase price of your flat is Rs 50 lakh or more, then you have to comply with the tax deduction at source (TDS) obligations. You will be required to furnish information about the tax deducted and deposited online on the Tax Information Network (TIN) website in Form 26QB 
(URL is https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp).  

5 Easy Tips that you should check before going for a Home Loan

We understand that one of the biggest challenge for an average citizen is getting the funds in place. Home Loan becomes an integral part of this process, these tips helps will make the entire process more refined and methodological.

1. Start saving for the down payment:

The down payment that you have to pay depends from the bank/lender and the kind of loan that you choose, thus on these factors your down payment amount may vary from 2.25% to 20% of the complete purchase price of the property. Once you have finalized the project start saving for the down payment, one of the most convenient method is to open a saving account where you can easy put some money every month.

In case the down payment amount is quite high, another option is FHA Loan. These loans are unique as they are backed by the government and are available as either a fixed or adjustable rate mortgage.  

2. Paper Work required:

For your bank/lender to approve and process the loan amount they would require a number of financial documents. It is going to be convenient, easy and hassle free for you if you already have this paper work in place, this would also help in fast processing of the loan. Documents may differ from lender to lender and also on the kind of loan.

3. Be smart use Smart Home Loan Calculator:

Smart Home Loan Calculator is a great tool for helping one understands the entire financial section of the project. This is one stop shop where you can see the complete structure, that gives you complete information about the loan amount that you would be eligible for and also the rate of interest.

4. An Eye on Interest Rates:

Rate of Interest always plays a key role in analysing the total amount that you would be paying off to the bank for the number of years that you have decided on. Now as we know that how significant is Rate of Interest in Home Loan segment as well but they also do change on a daily bases. So it’s advisable to either check them on a daily bases or subscribe for notifications and one should also compare offers to have a better understanding.

5. Credit Scores:

So why would a bank invest in you and on what bases, while they are the lenders/bank they are there to earn and your credit rating/scores is the way of analysing whether or not you are a safe investment.