Budget 2026: Revamp Housing Finance, Boost Affordability for Homebuyers

• Union Budget 2026 offers a critical chance to reform India's housing finance sector, with outstanding loans over Rs 27 lakh crore.
• Experts propose increasing home loan interest deduction (Section 24(b)) to Rs 5 lakh and a separate Section 80C limit for principal.
• Call for reviving PMAY-CLSS for mid-income groups to cut effective interest rates by 1-2% and save Rs 3-5 lakh.
• Advocates for simplified, no-cost home loan portability and digital balance transfers to empower borrowers.
• Suggests linking loan disbursements to verified construction milestones via RERA escrow accounts and mandating standardized loan disclosures.

Why It Matters: Budget 2026 can transform housing finance through tax breaks, portability, construction-linked disbursements, and transparency.