Homeownership is the aspiration of the majority, and for women buying a home is an important milestone on the path of stability and independence. Lenders and government plans in recent years have made home purchases possible for women with special privileges. Being a single woman buying your first home, it would be helpful if you understand the home loan benefits and that you are eligible to obtain so that you can make a well-informed decision.
From lower interest on home loan to tax benefits, there are a number of benefits that first-time women buyers can utilize. This article discusses the top five first home buyer benefits that enable women to make homeownership more affordable and accessible.
1. Lower Interest Rates on Home Loans
One of the key advantages for women homebuyers is lower interest on home loans. Many banks and lending institutions offer a rebate of 0.05% to 0.1% on home loan interest rates as a special concession for women borrowers. While this seems small, in a loan period of 15 to 30 years, this amounts to significant savings.
For example, if the regular home loan rate is 8.5%, a woman borrower could get a reduced rate of 8.4% or even lower. This not only reduces the total interest paid over time but also the Equated Monthly Instalments (EMIs), thus facilitating repayment.
Since home loan EMIs constitute a long-term monetary obligation, even a marginal reduction in the housing loan interest rate can go a long way towards budgeting in terms of months and overall financial stability.
2. Increased Home Loan Eligibility for Women
Financial institutions are likely to consider a number of factors in deciding housing loan eligibility, including income, employment, and credit rating. Women borrowers are likely to be more eligible for home loans due to their presumed ability to manage money and maintain consistent credit behaviour.
Apart from that, the majority of financial institutions allow women to add their income with co-applicants, i.e., spouse or parents, which further enhance their eligibility for a housing loan. With that, women are able to get a larger loan amount, so they are able to buy a better property or house in a desirable location.
To be eligible for maximum loan, women should have a good credit score (750 and above), pay bills on time, and should not have excessive debt.
3. Low Stamp Duty Charges for Women
Stamp duty is one of the major expenses to be paid for purchasing a property. Stamp duty differs from state to state but is generally in the range of 4% to 7% of the property cost. The majority of Indian states, however, give a concession in the range of 1% to 2% in the stamp duty charges if the property is registered in a woman’s name.
For example, women in Delhi and Haryana pay 1-2% less stamp duty compared to male buyers. Women are offered 1% off stamp duty in Maharashtra. This lowers the upfront expense of purchasing a home directly.
For a property worth ₹50 lakh, this waiver can result in a saving of ₹50,000 to ₹1 lakh, and hence, purchasing a house becomes affordable. Women intending to take advantage of maximum first-time buyer relaxations should consult state-specific schemes to take benefit of discounted stamp duty rates.
4. Tax Relief on Home Loans
Home-buying women are eligible for various tax exemptions on interest on housing loans and repayment of principal amount under various sections of the Income Tax Act:
- Section 80C: Women can claim a deduction of ₹1.5 lakh every year on the repayment of the principal amount of the home loan.
- Section 24(b): Deduction of tax of ₹2 lakh every year is allowed on the interest paid on a home loan for an occupying property.
- Section 80 EEA: Women first-time buyers purchasing homes under affordable housing projects (below ₹45 lakhs) are also eligible for an additional deduction of ₹1.5 lakhs on interest paid.
With these tax advantages, women are able to reduce taxable income significantly, which means more savings year on year. In the case of a woman being a co-owner and co-borrower with her husband, both of them can claim these deductions, which translates into doubling of tax advantages.
5. Government Housing Scheme Benefits
The government of India has initiated several schemes to help women attain the status of homeowner, primarily first-time homebuyers.
Pradhan Mantri Awas Yojana (PMAY)
- Credit Linked Subsidy Scheme (CLSS) under PMAY provides an interest subsidy of ₹2.67 lakh to women belonging to the Economically Weaker Section (EWS), Low-Income Group (LIG), or Middle-Income Group (MIG).
- One of the big advantages of PMAY is that women’s co-ownership is mandatory for houses bought under the EWS and LIG categories. This results in more women being homeowners and enjoying subsidized loan rates.
Women-Specific Loan Products
Special women’s home loan schemes are offered by all banks, including SBI, HDFC, and ICICI. These loans carry:
- Lower housing loan interest
- Low processing charges
- Flexible payment options
By exploring such schemes, single women buying their first home can further optimize their home loan benefits.
Additional Benefits for Single Women Buying Their First Home
1. Independence and Financial Freedom
Homeownership provides women with financial independence and security. Whether single or married, property in her name ensures long-term stability.
2. Potential Rental Income
If a woman purchases a house in a good location, she can earn rental income by leasing out the house. It can help repay the home loan or generate extra income.
3. Improved Credit Score
Early repayment of a home loan improves a woman’s credit rating, and it will be easy to get future loans for business, education, or investment.
4. Long-Term Asset Creation
A house is an increasing asset. Over time, property prices increase, ensuring women homeowners their wealth creation and financial well-being.
How MyFinanceCare Can Help Women Homebuyers
At MyFinanceCare, we understand that single women buying first home need expert guidance to navigate the home loan process. Our specialists help women:
- Verify home loan eligibility
- Compare interest rates on banks
- Identify first-time buyer benefits
- Obtain a PMAY and other government schemes application
- Secure the best home loan deals with low interest rates and minimal charges
Whether you are buying an apartment or a standalone house, MyFinanceCare provides you with maximum home loan benefits and makes an economically wise choice.
Conclusion
The women homebuyers of today are bestowed with numerous advantages while looking for home loans, which vary from location discounts on housing loan to government-subsidized programs. With the benefit of home loan incentives, tax rebate, and relief from stamp duty, women are able to achieve their fantasy to be a homebuyer.
For first-time women buyers, understanding home loan eligibility and exploring different financing options can lead to smarter investment choices. If you’re planning to buy a home, now is the best time to benefit from lower interest rates, tax benefits, and exclusive schemes for women.
If you are willing to take the extra step towards becoming a homeowner, MyFinanceCare is here to assist you with expert advice and customized home loan solutions. We lead you to make smart choices so that your dream home is not a dream but an investment for the future.
