Episode 106: Should you invest or pay off your home loan?

The golden rule of financial planning is to pay off all debt before you invest. This makes perfect sense as debt can loom large and wreak all kinds of havoc on your finances. But what about home loans? Is there any merit in investing your surplus even while you service your EMIs? Home buyers often find themselves at a crossroads on this matter.
Join us in our next Hangout as we guide you on when it makes sense to prepay your home loan and when it doesn’t. We will also discuss the new regulations regarding interest rates on home loans. Register now!



We are also on:

00:00 Introduction
10:43 Should I buy a house or continue to live on rent?
15:16 I want to buy a house in 6-7 years from now. How should I proceed?
16:19 Where should I invest the maturity proceeds of PPF, meant for children's education?
18:12 How is redemption from ultra short duration fund taxed?
20:33 What happens to the accumulated returns during a fund merger?
21:57 How can I choose the right fund for myself?
23:56 How can I minimise capital gains tax?
26:08 What would be an ideal equity debt allocation for a 30-year old?

[lemonlemony]

Excellent as always. Good job Rajesh and Dhirendra sir. Good Jodi 👌

[vinu]

I kindly request Dhirendra Kumar Sir to discuss if the questionnaire is an employee or self employee and invest in EPF instead of PPF. EPF =8.65% whereas PPF = 7.9%.

[acsmichael]

I am a salaried employee. I have taken a home loan of Rs. 20 lakhs in 2015. The current outstanding on the loan is Rs.14 lakhs. I am currently paying about 5k per month over and above the EMI. This is a surplus amount. I retire in 2032 and Ideally I would like to repay the loan about 5 years before my retirement. My question is: Should I continue to repay 5k extra every month or should i consider investing in MFs. If i should be investing please suggest appropriate mutual funds.

[hi-zvcc]

What is the best midcap fund for investing today ?

[pravdr]

i think the ltcg calculation on equity/MF is different can you double check and correct it in the next show?