Posted by Investing in your dream home in Mumbai has become possible with lucrative offers on home loans that suit your budget, needs, and preferences. Technology has made the credit market extremely feasible, with quick and smooth online application, verification, approval, and disbursal systems.
Finding the right financial institution to avail of a home loan was a big hassle a few years back. However, thanks to the opportunity to compare different home loan providers online, it has become much easier to fulfil home loan-related formalities from the comfort of your couch.
Applying for Home Loans in Mumbai
Mumbai is a thriving city with several home loan options and attractive deals. You get 80-90% of the home cost as a loan, which can go up to Rs. 10 crores. The home loan interest rates vary between 8% – 12.50%, and the loan tenure is up to 30 years.
Mumbai home loans also come with a 0.4% processing fee, which can increase up to 2%, along with the GST charge.
Here, we will look into key details of availing of a home loan in Mumbai and study the GST rates of flat purchases in the industrial capital of India.
Features of Home Loans in Mumbai
Home loans are available to buy various kinds of properties in Mumbai. Loan providers also offer home loan balance transfers of existing home loans at lower interest rates.
- Home loan top-ups and overdraft facilities are easily available to existing home loan borrowers.
- If you have a good credit rating, a smooth flow of income, and stable employment, you can get the benefit of pre-approved home loan offers in Mumbai at low-interest rates, easy documentation, and quick application and disbursal.
You can apply for a home loan on fixed or floating rates of interest. The floating rate of interest also gives you the benefit of zero prepayment charges.
Best Locations in Mumbai to Consider for Home Investment
The most popular localities in Mumbai, where home loans can easily be availed, are:
| Locality | Price Range (Rs. per sq. ft.) | Rental Value 2 BHK |
| Dhokali | Rs. 9,520 – 10,540/sq. ft. | Rs. 16,362 – 21,569 |
| Ghodbunder Road | Rs. 9,520 – 12,240/sq. ft. | Rs. 18,156 – 22,695 |
| Hiranandani Estate | Rs. 11,942 – 14,025/sq. ft. | Rs. 22,950 – 26,010 |
| Laxmi Nagar | Rs. 12,665 – 14,832/sq. ft. | Rs. 27,200 – 30,600 |
| Majiwada | Rs. 10,158 – 11,518/sq. ft. | Rs. 20,619 – 23,792 |
| Thane West | Rs. 9,945 – 12,155/sq. ft. | Rs. 18,912 – 23,452 |
| Vartak Nagar | Rs. 10,328 – 11,772/sq. ft. | Rs. 17,850 – 21,675 |
| Vasant Vihar | Rs. 11,262 – 12,708/sq. ft. | Rs. 22,012 – 25,049 |
Types of Home Loans in Mumbai
You can apply for various kinds of properties by applying for a home loan in Mumbai:
- Home loans to purchase a residential property
- Loans for the purchase of residential plots
- Loans for home construction
- Loans for home improvement
Eligibility Criteria to Get a Home Loan in Mumbai
- You need to be a salaried employee or a self-employed professional
- The age variation requirement is between 21 years old and 60 years old
- Preferably a credit score of 700 plus
- Income should be a minimum of Rs. 15,000 per month, and you should have worked in your current employment for at least 2 years.
How to Apply for a Home Loan in Mumbai?
Follow the steps mentioned below to apply for a home loan in Mumbai:
Step 1 – Compare the loan providers online, check eligibility, and apply.
Step 2 – Visit the financial institution’s official website and fill out the application.
Step 3 – Upload important documents like KYC, financial and professional, business profiles, contribution proof, etc.
Step 4 – Wait for instant loan approval and get doorstep service, where a representative will get in touch with you for further formalities, followed by an instant disbursal of the loan amount.
GST on Flat Purchase in Mumbai
When you consider purchasing property in any state in India, there are several taxes that you need to pay, like the transfer tax, property tax, mortgage tax, and the GST tax. If you are planning to purchase a flat in Mumbai, you will be liable to pay GST on flat purchase. GST on an under-construction flat was 8% with ITC until March 2019, but it became 1% without ITC from April 2019. GST on luxury flats changed to 5% without ITC from 12% with ITC from April 2019 onwards.
GST on flat purchases in India cannot be avoided. The good news is that you don’t have to pay GST if you purchase a completed or ready-to-move-in flat in Mumbai.
Conclusion
Purchasing a residence is not only a significant milestone in one’s life but also a representation of financial stability and autonomy. Nonetheless, it demands considerable deliberation on various financial factors such as government taxes, maintenance expenses, and the possibility of a substantial monthly instalment payment. Thus, weighing all the pros and cons before committing to such a long-term investment is imperative.