Whether people call it a dream or a necessity, owning one’s own home is truly the experience of a lifetime. Some of us are privileged enough to inherit one, but for most of us, owning a house is a long journey of denying ourselves any splurges and saving up every last penny. Then, when it is time to retire, we wish nothing more than to buy and move into a house we can truly call our own.
If you can relate to this, you will probably spend your entire pre-retirement waiting for that moment and preparing for that decision. So, it is essential to have the best information on what would be the right way to go about funding the entire process. After all, a house will be the greatest purchase of your life.
Maybe your first idea of funding your new house was to withdraw the entire amount from your Employee Provident Fund (EPF). However, it might be more financially prudent for you to re-evaluate that idea and start considering availing other options like a home loan plan instead.
Why not PF?
It is completely natural to wonder why utilising your entire EPF funds to purchase a house is an unwise idea. After all, it is your entire lifetime’s worth of savings and when would you use it if not to buy the home of your dreams? Moreover, even the government allows subscribers of the EPF scheme to withdraw as much as 90 percent to make down payments while purchasing houses.
However, experts agree  that it is best to avoid dipping into your EPF funds after retirement since it constitutes much of what will substitute your regular income. The only time it can be considered advisable is when one can afford to contribute that amount back into the PF. However, for the most part, the post-retirement corpus should in fact, be reserved for post-retirement expenses.
If you do wish to use any part of your EPF funds to contribute to your new house, let it be in combination with an attractive home loan plan such as the one the one that can be found on Finserv MARKETS.
Why home loan? And why home loan now?
The right home loan plan can help shoulder most of the financial burden of your new house purchase while only utilising a small part of your EPF savings. This helps you lead a financially comfortable post-retirement life and ensures that your EPF is a safe haven of funds in case you encounter any financial emergencies.
For instance, when Brijmohan wanted to purchase a house post-retirement, he realised that he could do it with an amount that was 75% of his EPF funds. However, that would leave him with only a meager amount of his savings on which he and his wife were to spend the rest of his retirement period.
He was then advised to use up only 25% of his EPF funds towards the house purchase, and avail a trusted, affordable home loan plan to pay off the remaining amount over the coming years. In the meantime, the rest of his EPF amount would accumulate and provide him with a comfortable life that he and his wife would be able to enjoy in his new home.
Therefore, availing a home loan is the most financially prudent choice if you are looking to buy a home upon retirement. Moreover, home loan plans, like the one on Finserv MARKETS, make the process even better with their flexible repayment tenures of up to 300 months and instant home loan approvals.
When is the best time to avail a home loan?
The short answer is: now. If you or someone you know has been thinking of applying for a home loan plan, the best time to do so is now.
The long answer is that for the fifth time this year, the Reserve Bank of India has announced another repo rate cut, this time by 25 bps (basis points). Like all major fiscal decisions by the Government, this repo rate cut will have widespread implications for people everywhere. But perhaps none are impacted more than potential borrowers, who only have reasons to rejoice .
In this low interest economic scenario, home loan interest rates were already low due to the previous repo rate cuts. However, with the latest repo rate cut, it is set to fall even further, making home loan plans a more lucrative option for borrowers than ever. With lower interest rates, your home loan EMIs will be lower too  . The time is ripe to go in for a home loan plan on Finserv MARKETS, which offers flexible repayment options and complimentary value-added services.
Source: Money Control
Now that you know the ideal process to fund one’s dream of purchasing a house, you or your family member can rest easy knowing that their post-retirement futures will be secure. However, there is another step in the process that is crucial too. It is important to find a trusted lender that can provide you with the best home loan plan in the market, with additional benefits.
All of this is made possible by the home loan plan provided on Finserv MARKETS, which requires minimal documentation and is trusted by more than 100 million customers in the country. You can avail a home loan of upto 3.5 crore at a competitive interest rate, and enjoy features such as custom-made plans and various complimentary value-added services.
Also check whether you are eligible for pmay only at Finserv MARKETS.
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