SparklyBurrito

Is it better to take a home loan even if you have funds

I wanted to understand from the community if it is a good/bad decision to take a home loan when you have funds arrangement. What is your personal experience on this?

10mo ago

Jobs

One interview, 1000+ job opportunities

Take a 10-min AI interview to qualify for numerous real jobs auto-matched to your profile 🔑

+322 new users this month

QuirkyUnicorn

JP Morgan10mo

Yeah the bank vets the property and you can always prepay. Maybe get some tax benefots as well.

GigglyNoodle

Philips10mo

Don't take a loan if you can afford it. Take the loan if you can get more interest by investing the same funds somewhere, than what you would be paying for the home loan.

GigglyMuffin

Bosch10mo

Taking the loan and investing it elsewhere is the worst strategy I can hear.

WobblyCupcake

Stealth10mo

I Guess, depends on your confidence, i personally feel tension in the back of my mind. Although I don't have the funds to prepay, so for now living with it.

DizzyLlama

TCS10mo

I haven't taken a home loan yet, but have enough funds to cover approx 50% value of purchase. But will definitely go for maximum loan amount & period.
Because.

property is vetted by the bank, which gives some addon security weightage
I might have to sell some assets like equity or gold whose profit will attract more taxes. So taking loan is better & will any way have that assets in case of contingency.
with max loan period(30 years), I will have less EMI than short period(10 years). Now I will pay more to banks if I will go with 30 years. But think abt this. The amount of money I will save on emi in first 10 years, if invested properly in SIP, that will generate far more returns which will be far more than money I will pay if I have to pay banks for 30 years.

JumpyPotato

Freelancer10mo

If you have funds, then don't take a loan. Think like your grandmother in such cases.

SleepyBagel

London Stock Exchange10mo

so many people will that banks do a good background check and everything and that justifies taking a loan even when you can afford it, and it's a hard disagreement from me. taking a loan in a private job is forecasting that everything is going to be all sparkles in future. I have seen actual people in the office having loans and they're stressed out and want to take sabbatical but really can't because of the EMIs. haven't forgotten private sector employees sending letters to RBI to do something about EMIs since so many lost jobs. just get a good lawyer to vet, or get 2 lawyers but don't take out a loan. it might look good on paper but hard to live with.