Relation between home loan premium and tax saving

The maximum tax saving that you would get on your home laon would be upto 1.50lacs in case of self-occupied property. And for the principal amount you would get the benefit maximum upto 1lacs u/s 80C.  However during the initial years the interest outgo is subsequent than the principal, so maximum tax saving would be on account of interest during the initial period.  the saving on account of principal would be nominal depending upon the amount of loan taken.

As the interst rates nowadays are between 9.50%-11% so you would benefit if the interest on your laon is 9-10%