Down Payment For Your Home Loan

About Home Loan

Home loan

Most banks today insist on paying about 10% – 20% of the total cost of the property as a down payment. This ensures that the buyer of the property has his stake in the maintenance of the property and timely payments of installments for ensuring continued ownership (since the loan amount will be lower than the market value of the property).

One should ensure that the down payment for the property is done out of one’s personal savings. In the case, such amount is not available then the options available are to take a Gold Loan or a Personal Loan.

The benefits to the banks for taking down payment are:

  1. It is an Insurance for the lender since the borrower runs the risk of losing money paid for a down payment in case of any default on the Loan
  2. Property maintenance is ensured since the borrower has his stake involved.
  3. In the case of any market fluctuation, in the value of the property, any downward risk is covered to the extent of the down payment (normally  10-20%).

One of the other important factors for determining the percentage of a down payment is the age of the building that is being purchased. Older properties require a higher amount of down payment to be made by the borrower.

Leading Home Loan Providers (Click to Apply)

  1. Axis Bank Home Loan
  2. ICICI Bank Home Loan
  3. PNB Home Loan
  4. HDFC Bank Home Loan
  5. SBI Home Loan
  6. CitiBank Home Loan
  7. Bank of Baroda Home Loan
  8. Allahabad Bank Home Loan
  9. BOI Home Loan
  10. Andhra Bank Home Loan
  11. Other Banks

Home Loan EMI Calculator Home Loan Interest Rates
EMI Calculator Home Loan Interest Rates

Read Other Related Articles

Should You Borrow Against Your Home? Benefits of Home Loan
Balance Transfer on Home Loans Bad Credit Home Loans
A Must-Read for Home Loan Borrowers Availing a Home Loan
Avail Home Loan Today

NEED A LOAN?

I have read the Privacy Policy & Agree to Terms & Conditions and authorize Dialabank & its partner institutions to Call or SMS me with reference to my application.


Latest News

Menu