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Planning to Rent A Home? Check Why Paying Home Loan EMI is a Better Decision

The decision to buy a home is spectacular and life-changing. It is hard to find someone who does not like to purchase or construct a home for themselves and their family. However, house construction or purchase cost can be high, forcing people to rent a house.  

This article busts the common myths of renting a house versus owning a home and how a home loan EMI calculator can aid decision-making.

Why Should You Own a Home?

Living on rent is often stress-free. You do not have to worry about construction or taxes. Moreover, the typical depreciation of the property value will not impact you. However, proponents of a self-owned house think otherwise. For them, a self-owned house gives them a sense of identity and security. It leaves them free from the worries of increasing rentals. Since most homeowners construct or purchase a home with a home loan, they know the interest rate and the EMI in advance, which helps them plan accordingly. Also, you can live more freely in a self-owned house, as opposed to a rented house, where you need to follow the rules laid down by the landlord.

Hence, whether you want to own a house or live on rent depends on your financial preferences, but with home loan interest rates hovering around their lowest-ever levels, it is hard to resist the temptation of owning a house.

How Can a Home Loan EMI Calculator Assist You?

A home loan EMI calculator can help you choose the best option between renting a house or constructing one. Since a home loan generally offers you a repayment term of thirty years, it is better if you calculate the costs over thirty years.

Usually, rental costs increase every year, between 5% and 10%. So, you need to calculate the total amount you will pay in these thirty years.

The next thing you should do is visit a reputed lender’s website, find the interest rate, and open a home loan EMI calculator. You need to enter the home loan amount required to convert your dream into reality, the repayment term, and the interest rate in the calculator. The calculator will display the EMI you have to pay every month for the next thirty years. The best thing about a home loan EMI calculator is that it lets you modify the loan amount and tenure as many times as you want until you arrive at an affordable figure. 

Once you know the total loan cost and EMI displayed by the home loan EMI calculator, compare it with the rental costs and pick the best option. 

Wise and intelligent people always choose the best option. In most cases, over a loan term, the cost of a home loan, including the interest rate, is cheaper than renting a house.


While renting a house might seem a more affordable option in the short term, purchasing or constructing a home is often more rewarding in the long run. As an added advantage, you may rent out the house you constructed or purchased, generating an additional revenue stream. Moreover, you can conveniently mortgage your house to get cash instantly, something you can never do with a rented property. Ensure to use a home loan EMI calculator to make the decision-making process seamless. 

Also, Read:

A Complete Guide to Calculate Net Working Capital

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