Why Saving Money During Home‑Buying Matters
Purchasing a home is one of the largest financial commitments you’ll ever make. Beyond the down payment, you face monthly EMIs, agent commissions, registration charges, and unexpected repair costs. Without careful planning, these expenses can quickly derail your budget.
However, with the right strategies, you can significantly reduce your out‑of‑pocket spending and make your dream home more affordable. This guide walks you through six practical, actionable ways to save money while buying a house with a special focus on Kerala’s real estate market.
1. Leverage Home‑Loan Tax Savings (Sections 80C & 24B)
Even if you have the cash, opting for a home loan can be a smart financial move. Under the Income Tax Act, you can claim deductions on both the principal and interest components of your loan.
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Principal repayment qualifies for a deduction of up to ₹1.5 lakh under Section 80C.
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Interest paid can be deducted up to ₹2 lakh per financial year under Section 24(b).
If you apply jointly with a working spouse, both of you can claim these deductions separately, effectively doubling the tax benefit. Moreover, a home loan creates a clear paper trail for your purchase, which is especially valuable for high‑income earners. Always consult a tax advisor to maximise these savings.
2. Choose Your Loan and Insurance Wisely
Banks often bundle home loans with insurance products, implying they are mandatory. However, neither the RBI nor IRDAI requires you to buy insurance from the lender. You are free to shop for a separate, more affordable policy. Bundled insurance often carries a single premium that locks you in; if you switch lenders later, you may lose that premium. Always read the fine print and consider standalone insurance options.
3. Avail Government Schemes – PMAY (Credit‑Linked Subsidy Scheme)
The Pradhan Mantri Awas Yojana (PMAY) offers an interest subsidy through its Credit‑Linked Subsidy Scheme (CLSS). Eligible first‑time home buyers can receive a subsidy of up to ₹2.67 lakh on their home loan interest. The scheme targets economically weaker sections, low‑ and middle‑income groups, but many middle‑class buyers also qualify. Check with your local municipal office or your bank to see if you meet the eligibility criteria.
4. Compare Home‑Loan Interest Rates Across Banks
Interest rates vary widely among banks and NBFCs. A difference of even 0.25% can save you lakhs over a 20‑year loan. When comparing offers, look for:
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Lower rates for female borrowers (many banks offer a 0.05–0.15% discount).
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Flexible EMI options (step‑up, step‑down, or balloon EMIs).
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Low processing fees and no hidden charges.
Use online loan‑comparison tools and negotiate with lenders to get the best deal.
5. Consider Under‑Construction Properties
Ready‑to‑move homes are convenient, but under‑construction projects are typically 10‑20% cheaper. Builders often increase prices once the project is complete, so buying early can lock in a lower rate. However, always verify the builder’s RERA registration and track record. Reputable developers like OMG Properties provide transparent project updates and assured completion, reducing your risk.
6. Negotiate with Builders and Realtors
Many home buyers shy away from negotiation, but it can save you a substantial amount. Before closing a deal:
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Research prevailing market rates in the area.
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Ask about upcoming projects or unsold inventory that may be discounted.
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Inquire about free amenities (parking, modular kitchen, clubhouse membership).
If you’re not comfortable negotiating, bring a friend or family member who has experience in real estate dealings.
Bonus — Tips for Kerala Home Buyers
Kerala’s real estate market is booming, with high demand in Kochi, Trivandrum, and Calicut. To save money while buying here:
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Look for builders who offer integrated financial services. Some developers, such as OMG Properties, have tie‑ups with banks and can help you secure a low‑interest loan quickly.
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Check stamp duty and registration charges – these vary by district and can be negotiated slightly.
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Prefer RERA‑registered projects – they offer greater transparency and legal protection.
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Explore emerging suburbs where prices are lower but infrastructure is improving.
Conclusion — Your Path to an Affordable Home
Saving money while buying a house is not about cutting corners; it’s about making informed choices. By leveraging tax benefits, comparing loan offers, using government schemes, considering under‑construction properties, and negotiating effectively, you can keep thousands of rupees in your pocket.
For Kerala buyers, partnering with a trusted builder like OMG Properties can streamline the process and provide additional cost‑saving opportunities. Start implementing these tips today, and turn your dream home into a reality without breaking the bank.
Ready to find your ideal home in Kerala? Explore OMG Properties’ latest projects and financial assistance options to get started.
