Banks issue a provisional certificate to show the projected payments towards interest and principal. Based on such projections, you can assess your tax liability in the year and plan other investments in tax-saving avenues.

Again, the recent share market crash has also made the market favourable for buyers. "People who had invested in multiple properties and after the share market disaster are unable to pay EMIs will sell the property at a lower rate. It is the right time to take advantage of the situation and buy flats from resellers. A five to 10 per cent advantage is guaranteed," said Champalall Baid, a city-based property dealer. Other property market watchers believe that property prices still haven’t gone out of hand in Kolkata. "Prices are still reasonable here and will go up by 15 to 18 per cent annually. So if you are planning it as an investment option, it will appreciate," said Jitendra Khaitan, CEO, Pioneer Property Management Ltd.

These are some home loan options available:

Floating rate loan

In case of floating interest rate loans, the rate of interest charged by the bank is linked to a benchmark rate.
For example, the bank's prime lending rate (PLR) or housing prime lending rate (HPLR). Banks decide their benchmark rates based on many internal and external factors like market conditions, monetary policies etc.

Fixed rate loan

In case of fixed interest rate loans, the rate of interest charged by the bank will remain constant throughout the tenure of the loan. However, banks charge a higher interest rate for this option as compared to a floating rate loan option. Currently, most banks have stopped offering loans with a fixed rate for the complete tenure of the loan. Some banks offer a fixed interest rate for a certain period (2-3 years) with an option for them to revise the rate later depending on the market conditions.

Hybrid loan
Tax benefits

Hybrid loan

In case of hybrid loans, banks give a certain percentage of the loan in floating rate terms and the remaining in fixed rate terms. The percentages are defined mutually by the bank and the borrower. Usually, it is 50 per cent fixed and 50 per cent floating, 25 per cent fixed and 75 per cent floating, or 75 per cent fixed and 25 per cent floating). Hybrid loans provide the benefits of both fixed and floating rate options.

Tax benefits

The government provides tax incentives to those buying a house. You can claim a deduction of up to Rs 1.5 lakh from your taxable income for the interest paid on your housing loan. You can also claim tax rebate under Section 80C for housing loan principal repayment of up to Rs 1 lakh.
This translates to a savings of around Rs 7,000 per month for tax payers in the highest tax bracket. If a borrower takes a home loan along with a co-applicant, this becomes a double bonanza as both the borrowers can claim interest deductions up to Rs 1.5 lakh and rebate up to Rs 1 lakh under Section 80C.