Exploring at present home loan schemes & associated T&Cs as offer the reputed banks & lending institutions of the city?
To thus possess own dream apartment in Newtown in the nearest future?
One moment in here. Have you finalized the down payment amount from own end? Plan to do that based upon the proportion of home loan you will be approved for?
There is a hack to know right here. If:
♦ A home loan pursuer commits to 20%-25% of the total property’s value as down payment, the lender organization spontaneously puts forward the best-available loan program with the guarantee of quicker approval & lower rate of interest;
♦ Since this definite percentage of down payment lowers the credit risk for a bank or private lending body & heightens its confidence in the borrower party.
Is arranging the said amount of down payment appearing difficult, given the current value of your chosen flat? Stress not & rather focus on the:
Money Management Tactics Finance Champs Vow For
#1 Ready Scope Of ‘Proportionate Release’
Is an under-construction housing project your choice? Then that is one score up for you, as-
♦ Certain banking & non-banking lender firms offer the ‘Proportionate Release’ of the down payment process for home-buyers planning to go for a new or developing property.
♦ Concerning the given time estimate for the project to complete, you get to pay the sum in small proportion over periods– thereby safe from the agony of paying a big one-time amount
Just remember:
◉ This option turns available when construction is by a prominent realtor house officially recognized by your lender
&
◉ The lending company also releases the home loan amount in slots as you continue clearing every defined periodic payment. So never be a defaulter.
#2 Source Funds Smartly
It is understandable. If your selected apartment comes at Rs 40 lakhs, then 20-25% of that sum – i.e. 8-10 lakhs is not something a common man has ready in hand.
But, what you can endeavor for arranging a 20 percent down payment or more is that of–
♦ Assessing own assets & savings
♦ List all personal assets viable for both selling & mortgage & compare the gains of sale & mortgaging on each.
♦ Note whether your or a family member’s insurance policy is maturing soon, that equals the money required. If not pre-planned for any crucial future expenditure, this becomes your swiftest option to arrange the down payment for the family’s home only.
♦ Think of withdrawing from your Employee Provident Fund since that also offers tax cuts & allows (as per the government) up to 90% of the withdrawal.
♦ See whether liquidating any mutual fund or a share you spontaneously bought once can pay off good
# 3 As You Calculate Down Payment
Surly try for a low Loan-to-Value or LTV ratio by making a standard down payment. But in that attempt-
◉ Never reach out for the funds kept to meet educational & healthcare expenses of family & handle unpredictable emergencies.
◉ Don’t save money by skipping essential bills of water & property tax, insurance premiums, SIPs, etc.
◉ Because all these expenditures will bounce back pressuring you to take a high-interest loan & cover them, with the obligation of repaying that loan – while EMIS on the home loan continue
◉ Thus exhausting your monthly income.
# 4 Also Attempt
To pick an EMI plan where the tenure is not higher than 20 years
Clearing any existing bank debts & thereby rising own FOIR or Fixed Obligation to Income Ratio to strengthen approval of your desirable loan plan
Plan consciously & purchase one of the apartments in Newtown in the smoothest of fashion. Let Team Realtech serve you with the best of suggestions.
