Home loan down payment made easy

Did you know that banks require you to first pay a token amount called a down payment, before they release the housing loan? Saving for the down-payment is the first step towards achieving your dream of being a homeowner.

What is a Down Payment?

When you apply for a home loan, the lending bank or home finance company (HFC) will mostly approve only 70-80% of the property value as the loan amount. This means, you are required to arrange to pay the remaining 20%-30% of the value. This remaining amount that you are required to pay from your pocket is known as the down payment.

In fact, if you have an excellent credit score and share a good rapport with your bank, they could even give you 90% of the loan. In any case, you need to have a sufficient corpus to pay the rest of the amount.

Easy options

Since buying a home is rarely an impulsive one, especially if you need to take a housing loan, you probably would have made a stock pile of investments and savings for it. In other words, you need to be financially wise. This means starting early to save up.

Use your investments

If you have a strong corpus of steady investments in mutual funds, fixed deposits, shares, or other such savings, make use of any of these to make the down payment.

Debt mutual funds are very popular not only because they are safer but also give decent returns which are higher than what you can get from your savings bank account. By opting to redeem a debt fund, you can leave your savings untouched or invest it in a Systematic Investment Plan (SIP).

Take a soft loan

One of the best options yet is to take a soft loan from your family or friends. This is based on an unspoken understanding between you and your family or friends on your repayment options. Why we say it is one of the wisest options is because you don’t need to pay any interest on the amount borrowed and you also have the time for repayment at your convenience.

Opt for a personal loan

Going in for an unsecured loan is your best bet. Based on your rapport and credit score with your bank, you can apply for a collateral-free loan on low interest rate, or even a personal loan on a flexible repayment tenure.

Avail the PMAY subsidy

Check your eligibility to avail the subsidy that comes with the Pradhan Mantri Awas Yojana (PMAY) a scheme that was launched by the government in 2015 to provide affordable housing to all Indians by 2022. As a beneficiary of this scheme, you receive an interest rate subsidy of up to 6.5% on your housing loan. As this greatly lowers the EMI amount that you have to pay, you do not need to keep additional funds on hand for repayment, and can instead use these funds for the home loan down payment. https://www.hdfcbank.com/personal/resources/learning-centre/borrow/how-to-apply-for-pradhan-mantri-awas-yojana

https://www.bajajfinserv.in/home-loan-pradhan-mantri-awas-yojana

https://www.axisbank.com/retail/loans/home-loan/pradhan-mantri-awas-yojna/eligibility

Unique EMI holiday scheme

HM Constructions  http://www.hmconstructions.com/ is a popular construction group with several residential and commercial projects scattered around the city. Each of the homes is built in a way to offer maximum space and comfortably accommodate a family of four. The unique scheme lets you book any of our spacious units of your choice at a token amount of Rs.10,000 only. Since the units are ready-to-move, you can finish up the formalities and move into an apartment of your own in just 10 days. What’s more, once you move in, you can let HM take the burden of your EMIs! The EMI Holiday Facility lets you postpone your EMIs by 10 months so that you may enjoy your stay at HM Indigo for nearly a year before you start paying the EMIs.

So, stop worrying about your monthly rental and book an HM Indigo http://www.hmconstructions.com/projects/details/hm-indigo apartment today.

Call us on 8880225555 and we will help you find a home that suits your lifestyle, falls within your budget, and is close to all that you would need throughout the year!