Buying a home has to be one of the greatest decisions that you will ever take in your life. If you are financially sound, you can easily buy a home without depending on anyone else.
But, if you can’t buy a home on your own, you may apply for a home loan and fund your wish.
However, even though you can avail a large home loan amount as per your eligibility, you will need to put down at least 15-20% as the down payment (while still dealing with day to day home improvement and upkeep tasks such as air conditioner maintenance). If you are salaried personnel, you may find it tough to arrange the down payment amount.
Still, some ways can help you put down your home loan down payment including the loan against the insurance policy. Let’s help you go through some easy ways to make your home loan down payment an easy affair. Read on!
Here’s how you can make home loan down payment
1) Start building a corpus years before availing the loan
One of the simplest ways to accumulate funds for your home loan down payment is building a corpus from your salary and savings each month. Nonetheless, it needs to be done sometime before applying for housing finance. To start, you can start investing at least 10% of your Salary into this account. You can also increase the percentage after getting an increment each year in your income. This way, in some years, you would be able to save enough to pay for your home loan down payment.
2) Opt for a loan against an insurance policy
Your home is surely going to be an asset that will appreciate over time. You can also consider uncovering your long-term savings if you don’t have any feasible option. We are talking about the loan against the insurance policy. Yes, if you have invested in an insurance policy or any other assets, you can borrow some money against it. This way, you can get a large amount to make a large down payment and reduce the principal and EMI amount.
You can also use the amount to pay off an entire home loan by making prepayments or foreclose. It is vital for such borrowers who want to pay only one EMI. As per your eligibility, you can borrow as higher as up to Rs.10 crore under the loan against insurance policy facility.
Also, the loan against insurance policy interest rate is affordable making it easier to manage and repay. Lenders also appoint a dedicated Relationship Manager to assist a prospective customer. It is to resolve all loan related queries. You can also track the loan’s progress via the digital customer portals of the lender’s round-the-clock.
3) Take the help of the family and friends
If you don’t have any other resort, you can also consider borrowing some amount from your friends and relatives. However, borrowing some amount as the home loan down payment may lead to some internal issues with them later. Some of them may not give you due respect after you have taken money from them.
Even you may not feel comfortable to pay them a visit on some occasions. It is because they may ask you for the repayment. Hence, availing money from relatives may have its own pros and cons, and it depends from person to person and how one feels about it.