Tips to Get Home Loan with Minimum Down Payment

Tips to get a Home Loan with Minimum Down Payment

One of the biggest dreams in the journey of life is buying a home. Today, you get a plethora of home loan schemes in the market. You get many flexible options when it comes to choosing a home loan. Home loan interest rates too have gone down over the years. However, there is one thing that remains common across financers. Typically lenders will offer a maximum of 90% of the property value as your home loan. This means that the remaining 10% of the property value has to be paid in the form of a down payment from your end. This can cause a bit of anxiety because you have to arrange a sizable amount by yourself. You can certainly consider some ways to get a home loan at a low down payment. This can help you plan your goals better.

We have listed down the best ways to pay a minimum down payment home loan:

1. Pradhan Mantri Awas Yojana (PMAY) scheme

The government of India launched PMAY to provide affordable housing to the urban poor. PMAY gives a substantial subsidy to first time home buyers who are from lower and middle-income groups with a cap of maximum family income of INR 6 lakh. Let’s take an example. The lowermost two categories, economically weaker section (EWS) and light income group (LIG) scheme holders are eligible for a subsidy of up to INR 2,67,000 on their home loan amount of INR 1,000,000. This means that the amount of INR 267,000 will get reduced from the total amount repayable. This reduction lets you arrange funds for down payment easily. This certainly mitigates the financial pressure of gathering funds for a down payment. Receiving your subsidy and home loan through PMAY is like receiving your home loan at zero down payment.

Must Read : Check Eligibility Criteria for Pradhan Mantri Awas Yojana

2. Approach the right lender

Down payment can vary from 10% to 20% from lender to lender. It is important to meet up with many lenders to find the lowest down payment. With SMFG Grihashakti, you can get a home loan up to 90% of the property value. Home loan interest rates offered by SMFG Grihashakti are affordable and customized as per the applicant’s eligibility as well as Grihashakti’s policy at the time of loan application. The repayment tenure is flexible as per your convenience. It can last up to 30 years, depending on your age at the time of loan application so that it is easy for you. These benefits make the home loan beneficial to your financial planning.

3. Analyze your investments

Here are the steps to know your home loan amortization schedule:
You could liquidate or pull up funds from your investments like fixed deposits or mutual funds. Or you could consider taking an unsecured loan. This way you can arrange finances to make the down payment.

3. Healthy credit score

The thumb rule is the higher the credit score, the better it is. Your credit score is important in determining your credibility. Your creditworthiness is judged so that lenders rely on your payment capacity. Some of the factors that are measured are the amount of debt you have accrued over years, what has been your repayment track record, how frequently you repaid, etc. It is advisable to show additional sources of income to your lender. This can include the spouse’s salary, business income, etc. Lenders will want to know the available surplus after existing payments.

Benefits of home loan with SMFG Grihashakti:

With SMFG Grihashakti, you can get a home loan up to 90% of the property value. The repayment tenure is flexible to your convenience. It can go up to 30 years so that it is easy for you. These benefits make the home loan beneficial to your financial planning.

• SMFG Grihashakti lets you enjoy the PMAY interest subsidy along with easy repayment and minimal documents.
• SMFG Grihashakti offers an online tool called home loan eligibility calculator. SMFG Grihashakti’s home loan eligibility calculator lets you find out your home loan eligibility amount in just a few seconds. All you need to do is to key in some details as requested in the tool. This gives you an opportunity to have a deep understanding of what to expect from your home loan. Home loan eligibility calculator is available completely free of cost. You can even use it multiple times with different values so that you can achieve your desired result.
• You can easily complete your application online. It is a paperless and contactless home loan application procedure that can be carried out from the comfort of your home. You have to start by clicking on the ‘Apply Now’ button, enter details, upload documents, and submit.
• Alternatively, you can visit any of our branches and take the process forward.

Must Read : Complete Checklist for Documents Required for Home Loan