Lenders like banks as well as any other non-banking financial institutions will always shell-out up to 80% of your total property’s worth as a loan amount whenever you borrow a home loan. You only usually get the remaining 20% of the total property value and this is what is called your property down payment.
This article has highlighted some great ways and tips you can adopt to ensure you get a great deal when planning your home’s down payment in advance.
- Saving for it
It is a fact that paying for a home down payment always, and in most cases, usually leaves many people’s pockets empty. And if you don’t plan or sort your financial issues right, then you stand a chance of going seriously broke. Here is where savings can come to your rescue and take a big chunk off of your financial stresses, and that’s only if you have been putting money in your savings account for some time. This is one of the main reasons why you need to start saving as early as now for your near future home down payment fees. You don’t even need to rush it, you can be saving little by little and over time all this cash will be a lifesaver as you will come to realize one day and your home down payment will be one of those moments where it saves you.
You can also take a loan for paying your home down payments as well which will end up putting you in debt of two sets of EMIs. Don’t go for this option unless you feel you absolutely have to since you will now owe the down payment loan and the home loan.
- Assets and investments liquidation and mortgaging
You can also pay your home down payment by mortgaging or liquidating your investments and assets too. You can sell your old car or even some of those expensive gold or silver ornaments that you can do without, or shares, mutual funds, stocks, or even surplus property. You can either mortgage or liquidate any or all of these assets and property to pay for your home down payment.
You can also opt to secure a loan against your rent amount, insurance policy, public provident fund, fixed deposit, etc. to pay for the down payment if need be plus the government currently allows for people to withdraw up to 90% of their EPF (Employee Provident Fund) which can also be of great help with your down payment issue.
- The other options
You also have a wide array of choices you can choose from to get assistance with your current home down payment problem. Many Housing Finance Companies, as well as the Non-banking financial companies, offer attractive interest rates on loans that you can always go for plus with the high loan eligibility, you stand a better chance with these guys. And you haven’t read the best part yet! Borrowers now have the ability to borrow up to 90% of home loans against their total property cost which also means that they will only be required to pay 10% of their total property and asset value as down payment.