Ways to Plan Your Home Loan Down Payment

home loan down payment

Housing loans help you to acquire your dream home. When you opt for housing loans, finance companies lend 80- 90% of your property’s value and the other 10-20% also called as the down payment, has to borne by you. For example, the property’s rate is Rs. 80 lakhs, the housing finance company will pay (on the estimate of 80%) Rs.64 lakhs and the down payment you will have to pay will be (on the estimate of 20%) Rs.16 lakhs.

Are you someone who has selected your dream house and the only reason you are holding back from purchasing it is the worry of how you will arrange funds for the down payment?

Understanding your concern, here are ways you can gather the money required for your home finance down payment:

  1. Save for it, and it will save you:

    It is always preferred that you save up and pay the down payment by yourself. Save it up through the years to make it easier for you in the long run. You can also use saving methods like recurring deposits, investment in gold, mutual funds, etc. if keeping it in a bank isn’t benefitting much.

  1. Liquidation of Assets and Investments:

    Down payments can be paid by selling assets like an old bike, a piece of land, or another property you own. You can also liquidate your investments like fixed deposits, mutual funds, PPF etc. Just make sure you are financially secure for a while if this is your only source of income for the years to come.

  1. Opt for a loan:

    Only if you are okay with having two loans (the home loan and this one) and okay with paying EMIs for both, then consider opting for a loan to pay your down payment. However, make sure you calculate home loan EMIs and the interest rate of the other home loan before you decide to opt for this option.

  1. Family and friends:

    Not recommended, but if you don’t have another outlet, you can borrow funds from your family and friends and repay them once you have the resources. An employer could also be an option if he is willing to help you out, however, be sure and prepared for whichever way you decide to go forward with.

All in all, it’s a better bet if you save up and pay the down payment on your own to ensure no hitches and harm in the future. Indiabulls Home Loans takes a keen interest in supporting their customers through every step of their home finance process, from picking your dream home to the registration of the property, from documentation to calculating the perfect home loan EMI and tenure of your loan. With over 220 easily accessible branches available to you, the scope of anything to come between you and your dream home is curtailed.

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