A Helping Guide On Home Loan Down Payment Have A Look Before Applying

Posted by rupee on Tuesday, March 19, 2013 Under: Home Loans
Home loan has turned out to be of great help for all those who want to buy their own house. Due to the presence of varied loan options in the market like Corporation Bank home loan, SBI home loan, Axis Bank home loan, DHFL home loan, ICICI Bank home loan, etc. At the time of taking the loan, you would be needed to pay some amount as a down payment because the lender will not finance the entire home cost. Usually, down payment varies between 10 per cent-20 per cent of the total home cost as lender finance the remaining portion.

Age of the building

Another factor which should be considered is the age of the building. On the basis of age of the building, down payment may change. If it is old then you would be needed to pay high down payment. You should always try to make as much as down payment you can.

Down payment concept is existed due to below reasons-

  • It shows credit worthiness of the borrower.
  • It proves to be an insurance cover for the borrower as they know that if they will default in loan repayment then they will not lose the property but it will also cost them their down payment amount.
  • It makes sure that borrower has stake vested in the property.
  • It ensures that lenders are protected from any fall in interest rate as the amount which they lend is lower than the market price of the house. 

In : Home Loans 

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