Why should one consider home loans? Well, Owning a home is a common life goal for many people. Your own home can provide numerous benefits and value for you and your family. While renting may be a convenient option depending on location or career, owning a home is often considered the ultimate goal.
One way to achieve this goal is through a home loan, which allows purchasing a home, building on the property, or renovating. However, borrowers must typically meet certain conditions to be approved for a home loan. Please read this blog if you have been contemplating taking Islamic home loans.
As with every loan, a home loan’s repayment period is quite long. Minimum of ten years or more. So once you know that repayment schedule, you can plan out a tenure that is suitable for your financial circumstances.
You can settle the home loan before the tenure ends if you have enough capital. This is important because you can save enough money over the years to make the repayment.
A home loan ensures the privilege of having some tax benefits that will help you save money. So this tax act can vary depending on the country you live in, and it essentially becomes a deduction on the principal repayment.
Likewise, these tax benefits will help you immensely when getting home loans. If you had gone with a self-funding home purchase, you wouldn’t be able to have this benefit.
Wonder how? With the rapid economic and market changes, owning your own house brings much value to your wealth. Rent and construction costs are continuously rising. And with the inflation of certain countries, it will become worse in the future. So owning your dream house now will make you feel relieved when you look back in ten years.
It is an asset that you can appreciate. Many people don’t realise that renting an apartment is going to cost you more in the end. The worst is that you will not have your own place, although you have been paying for apartments for years.
If you have purchased a house, you have the freedom to live in the house. This means you do not have to pay monthly rent or extra yearly costs. It is a great way to save money while fully enjoying the benefits of owning a house.
For instance, if you have acquired a house loan tenure of 30 years, you have more than enough time to save monthly rent money, which you otherwise would have spent throughout the 30 years. This is one of the biggest reasons you should consider a home loan when planning to own a home.
It is no doubt that home loans have been systemised in a way that debtors can benefit properly. However, do not overthink the tenure of the loan. This is one of the moments in your life where you should not look at the big picture and look at it as small milestones.
And each time you approach and put in an instalment, it becomes one step closer to settling the home loan. So don’t get stressed about it. This will be the most significant and valuable investment you ever make for yourself and generations to come. If you are a Muslim or a non-Muslim looking for loans that don’t charge extra, you’ve got Afiyah Financial Services.
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