I’m planning for a home loan for about 30L. I currently fall under 30% tax bracket and my wife fall under 20% tax bracket. We are planning to co-own home and loan. From my calculations I’ll be saving atleast 10K each month from tax when home loan exempted from net taxable income. If I do a regular SIP from this amount in mutual fund for my loan duration (10 years) I generate corpus of 21L.
Total interest part of EMI is roughly equal to 15L when I considered SBI home loan. Is my calculations are correct? Can I really make almost interest free home loan if I use it wisely as tax savings option. Please advice.