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Applying for a Home Loan? Here are 5 factors you must know

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Are you applying for a home loan? You should certainly keep more than a few factors in mind. Home loans come in handy whenever we have to purchase our dream houses which most of us, particularly the professional salaried classes, cannot afford otherwise. According to RBI loan guidelines a home loan is thus one of the biggest investments of our lives and has to be planned carefully in order to maximize one’s benefits from the same. Bear in mind that a home loan is a long-term investment and should be handled responsibly. You should only apply for a home loan in case you are sure that you will be able to responsibly manage and repay debt that you have on hand. You should also plan for emergency situations well in advance.

Too many people make the mistake of not having enough surplus funds saved up to cover rainy day expenses or cater to needs like sudden medical treatment and other exigencies without having to compromise on home loan repayments every month. Make sure that you have a corpus saved up as an emergency fund and this should encompass 3-6 months of your net monthly salary which naturally includes the amount that you are repaying as the home loan. Do not default on your home loan by all means. Defaulting means automatically ending up with a lower credit or CIBIL score. Any default leads to your score coming down drastically and this will hamper your overall credit rating and drive a wedge in your relationship with your lender. Make sure to repay your home loan timely and also try and prepay some part of the loan whenever you can. If you wish, you can always use your surplus funds or bonuses to repay some part of the home loan principal amount. Not only will this help you slash the overall interest costs payable on the loan, the EMI will come down. Now, if you keep the EMI unchanged even after prepayment, the loan will be reduced even further. This is a good strategy to take if you are considering applying for a home loan.

On that note, here are 5 factors related to home loans that you should definitely be aware of-

  1. Principal Amount Tax Deductions- There is an income tax deduction under 80C where you can get up to Rs. 1, 50, 000 as the deduction on the principal amount that you have repaid annually. However, bear in mind that this section covers several other investments such as insurance so you will have to plan and apply for deductions accordingly. This is also the section under which you get deductions on registration charges and stamp duty paid for your property.
  2. Interest Amount Tax Deductions- You can get up to Rs. 2 lakh as a tax deduction on the interest paid annually on your home loan under Section 24. This is another way to reap high benefits in terms of tax savings.
  3. Tax Deductions for First-Time Homebuyers- If you are a first-time home buyer, you will be eligible for a deduction up to Rs. 50, 000 under Section 80EE provided you meet certain conditions. 
  4. Joint Loan Applications- If you apply jointly for a home loan with your spouse or eligible family member, not only does your home loan eligibility increase, both co-borrowers can get the same home loan tax benefits in case they are both co-owners of the property. This maximizes tax benefits for a family.
  5. Down Payment- You will be required to pay anywhere between 15-20% of the property price upfront as the down payment. This has to be arranged prior to applying for the home loan. Try and pay as high as you can in order to keep the home loan EMI low.

Aditi Ahuja is a noted Financial Consultant and Adviser. As she has been worked with many financial firm for several years, she has extensive knowledge in this field. She writes on Financial affairs, issues and solutions covering a broad range of topics like loans, insurance, investment and funding. Aditi loves to write and travel in her free time.

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7 Tips To Smile With Confidence Wearing Dentures

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Dentures are a fantastic means of restoring your smile and safely investing in your lifestyle for a long time to come. Whether you’re using partial or full dentures, they’re going to enable you to eat, chat and drink as you want and need to over the course of the day. Although they might be a bit an adjustment, dentures are going to give you a new lease on life. Now, even though they give you an awful lot, dentures do tend to require a little love and care in return. Here are seven tips to keep you smiling with confidence once you incorporate dentures into your lifestyle…

Give Them a Rest

Your dentures need to be given a rest from time to time, no matter what type it is that you’re using. It’s actually recommended that they be taken out for around four hours day and also during sleep. In order for your dentures to help you as you need them to, you should make sure that you’re caring for them. Taking them out when reading, napping or watching a good movie will help to make the time you have without them pass a little sooner.

Clean your Whole Mouth

This is a vital dental care tip whether you have dentures or not! Many people think that they only have to pay attention to their teeth, or dentures, when brushing and flossing, but that’s not the case. It’s important that you clean your mouth, cheeks and tongue whilst brushing to ensure that all food and plaque build up is sufficiently removed. This may not seem too natural at first, but once you get yourself into the habit of it, you’ll be regularly doing it in absolutely no time.

Use the Right Tool

It’s imperative that you take precaution when cleaning your dentures, and this includes being mindful about the tools that you use. A soft or ultra-soft bristle toothbrush to gentle buff away debris both from your gums and your dentures. Plaque build up can be damaging to your whole mouth and your general wellbeing, so it’s very important that you’re consistently cleaning it away. Heading to your dentist regularly will help you to continue to take care of your dentures as best you can.

Pay Attention to Your Adhesives

Your adhesive has to be compatible with your mouth, dentures and tools that you use for cleaning your mouth. Be sure to only use products that your dentist has advised you to use, and only those. It’s easy to forget or pick up something else because it’s a lower price, but this can be detrimental long term and is best avoided.

Don’t Let Them Dry Out

Dry dentures can result in warping, so it’s important that you store them in water or a solvent liquid when they’re out of your mouth or at night.

Be Careful

Make sure you handle your dentures with the utmost care, otherwise, you risk breaking or damaging them. This means taking time not to drop or mishandle them when you’re taking them out and always being mindful of what you’re eating. Biting down on anything too hard or brittle could result in a fracture or breakage.

Visit your Dentist Regularly

Lastly, always be sure to head to your dentist for regular check-ups and cleans, as well as for consultations concerning your dentures!

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