Make use of different varieties of mutual funds schemes to effectively use your investments in buying a home for your own in addition to arranging a down payment for the home loan.
One of the first big ticket expense that most of us face in our life is owning a home. To own a roof over one’s heads is certainly not a tough job considering the financing option available these days. Buy it outright if you have the funds at your disposal else borrow from bank or other lending institutions. Presently, home loans are anywhere between 8.5-9 per cent per annum calculated on monthly reducing basis.
How much of self-finance?
Home, however, cannot be entirely financed by lenders. As per new RBI rules, one has to pay-up at least 10 per cent (earlier it was 20 percent) of property value as down payment to the lender and the balance i.e. 90 percent can be financed. This holds true if the loan amount is less than Rs 30 lakh. For loan amount between Rs 30-Rs 75 lakh, the minimum down payment is 20 percent of loan amount, while for loans above Rs 75 lakh, the minimum down payment is 25 percent. So, on a Rs 60 lakh property, the down payment comes to Rs12 lakh, while the balance Rs 52 lakh can be availed as loan.
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