Home Loan Tax Deductions: Key Tips for First-Time Buyers to Optimize Savings

• Budget 2026 maintains existing housing tax deductions, offering an opportunity for homebuyers to optimize savings.
• Align ownership and loan structure: Joint loans aligned with income ratios can multiply deductions; tax benefits start after possession.
• Treat EMIs as a strategic tool: Focus on EMI composition in the first 3-5 years when interest forms most of the repayment.
• Factor in the new tax regime: Deductions are limited; focus on reducing borrowing costs through higher down payments and shorter tenures.
• Balance tenure, interest, and EMIs: Start with a comfortable tenure and progressively prepay to reduce overall cost.