Buying a house for a single mother can be a difficult decision, it requires careful financial planning. You have to secure all your expenses as well as your child’s future. However, financial institutions give special benefits to women on home loans, which makes it easier for them to buy a house.
Many single mothers take home loans to fulfill their dream of buying a house. In such a situation, they must consider some important things before making any decision. Do you also want to know how single mothers can fulfill their dream of buying a house? So let’s know.
Home Finance Options for Women
Many banks and financial institutions give them special benefits so that more and more women can buy their own house. Actually, women are more disciplined in saving, financial planning and repaying loans. Many financial institutions give women a discount of 0.05 to 0.10 percent on home loan interest. Apart from this, the central and state governments also give a discount of 1 to 2 percent on stamp duty.
Similarly, under government schemes like Pradhan Mantri Awas Yojana, preference is given to women candidates, especially first-time applicants. Credit subsidy is also given to women under the Credit Linked Subsidy Scheme. Women can also get tax exemption on home loans, Under the Income Tax Act, they get the benefit of a rebate of up to Rs 1.5 lakh per year on the principal. Apart from this, they can also avail a deduction of up to Rs 2 lakh per year on home loan interest.
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Consider these aspects before applying for a home loan
If you are a single mother or a normal woman and want to apply for a home loan, then consider these aspects:-
Consider your credit history
First of all, your credit score should be good enough to get a home loan, by doing this you can negotiate the terms of the loan and you will easily get a loan at affordable rates. Generally, a score above 750 is considered good. Therefore, before applying for a loan, check your credit history. If there is any outstanding loan, repay it, if there is any discrepancy, correct it. By doing this, not only do you get a loan easily, but your financial needs are also met.
Keep money aside for a down payment
Banks often offer loans up to 75-90 percent of the property price, which means you have to pay 10-25 percent as a down payment. Making a higher down payment on a home loan reduces your EMI and thus reduces the interest burden.
Make sure to keep an emergency fund
Single mothers should also keep an emergency fund before taking a home loan. If any sudden problem arises, medical emergency, job loss, or home repairs have to be done, this fund will be useful for you and your burden will not increase. Our opinion is that you should have a complete arrangement for at least 9-12 months of expenses. This amount comes in handy in difficult times.
Do not withdraw funds from long-term investments
It is important to invest for long-term investments like retirement or a child’s higher education. In times of emergency, you may find it easier to access these funds. But doing so can put your future at risk. Premature withdrawal also leads to penalties and tax losses.
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