Government to provide more subsidy for first-time home buyers
Posted on: 11/Feb/2017 3:35:25 PM
First-time home buyers belonging to the higher income category to get more government subsidy after about ten days of 2017-18 Union Budget. At present, those who earn above Rs 6 lakh per annum can avail subsidy on home loan interest.
For those falling under the category below Rs 6 lakh per income are viable to 6.5 percent points towards the principle amount of Rs 6 lakh and this is regardless of the total loan amount.
For example, if they are getting a loan of Rs 20 lakh towards buying new home at the rate 9 percent per annum, they will be bound to pay only 2.52 percent interest towards 6 lakh and for the remaining Rs 14 lakh, they will have to pay interest rate of 9 percent.
Two new slabs are announced to all the first time home buyers. These slabs are set under the extension of income slabs. These are applicable to loan amounts taken for up to 20 years as tenure against the present limit of 15 years. The subsidy is expanded to income slab of over Rs 12 lakh per annum and Rs 185 lakh per annum.
