Is This the Right Time to Take a Home Loan?
Read this post to know if you should take a home loan and purchase a home.
Interest rates on loans have been lower than they have been in the past few years. The slowing down of the real estate sector in the recent past and the ongoing pandemic have brought down the home loan interest rate to as low as 6.70%. But does this mean that it is a good idea to buy a home right now? Should you hurry to take advantage of the low-interest loans?
The answer is not an easy Yes or No.
You should answer these 3 questions and see if this a good option for you:
Q1: Do you have a stable source of income?
The COVID-19 pandemic has dried up liquid funds of many individuals. It has also severely affected the job market. The aftereffects will be felt for years after the pandemic ends (when it does as it is showing no signs of slowing down).
Q2: Are you ready for any financial emergency?
Secure your family from any financial emergency before you can even think of a high-ticket loan right now. Job loss, death and disability are a few of the financial emergencies for which you need to plan before you rack up a mortgage loan.
Q3: Is it an investment property or a dream home you are looking for?
If you are planning to buy your dream home and have the financial avenues to make it happen then by all means go for it. But, this may not be the right time to look at property for investment since the real estate market has been stagnant for quite some time now and it will be a while before new buyers come in in droves to push demand. Also, economic repercussions of COVID-19 are only going to make it worse.
What are your thoughts on buying a home in the present situation?