If you are in for a Housing Loan, you also need to take steps to save or arrange for the down payment. Read on to know the four points to help you out!
Congratulations on your decision to buy your dream home! It’s ‘once in life’ opportunity and you must utilize it entirely, especially if you are buying your abode on a Housing Loan. Once the Housing Loan application of the borrowers approves, the next thing that looms large is the arrangement for the down payment.
A Housing Loan down payment is nothing but a first payment that a borrower makes before acquiring a credit. Many banks and lenders charge a fixed down payment out of an approved loan amount which could be anywhere between 15-20%.
A lender takes up the down payment so that they use it as security in case a borrower is unable to repay the Housing Loan on time in future.
Failure to pay the down payment may cancel your Home Loan. Thus, you should make sure to arrange or save for the down payment for your loan for home. Have a look at the four vital steps!
- Always plan ahead
When you know that you will require a Housing Loan for buying a home, you also know ahead of the time that you will also need to put a down payment. As a result, you should always plan for it in advance so that your loan application does not go haywire due to the lack of a proper down payment fund arrangement.
- Sell a property not usable to you anymore
Another method to arrange for a down payment is by selling a property that you longer use or have put for a future use. If you an old car which you don’t use or a vacant plot which you don’t plan to build on, you can sell them and get the money for the Housing Loan down payment.
- Opt for a personal loan
Personal loans have less eligibility criteria and documentation and you can avail a loan of up to Rs.25 lakh. Go ahead and use the personal loan amount to pay as the down payment for the Home Loan. Leading lenders will approve your personal loan application instantly and if you are eligible and furnish all documents online, they will also credit the money into your bank account in less than 24 hours. It is one of the quickest and self reliant ways to arrange for a Housing Loan down payment.
- Borrowing from the Life Insurance Policy
Another popularly convenient method to arrange for a Home Loan down payment is by borrowing against your life insurance policy if the service provider enhances the capital. You can also take advantage of the low interest rate and non-messy repayment tenor. Check with your life insurer today to know more.
The Bottom Line
Many Housing Loan borrowers either don’t know how to save for the down payment or get a better Home Loan interest rates. Think over the points discussed to start saving or arranging for the Home Loan down payment better! Happy Housing Loan Management!