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By John Miller
Every individual has the right to enjoy the experience of purchasing a home of their dreams. However, there are some of them who do not want to opt for a mortgage due to their own reasons. Well, the home purchasing procedure is where you might have so many thoughts in your mind. You might be thinking that this will be the place where I’ll be raising my kids, spend time with near and dear ones, and make memories that will last forever.
Also Read : 5 notes you need to know before taking a Loan
Now on the other hand, when it comes to opting for a mortgage, there are so many things to take into consideration. From the rate of interest to down payments, monthly payments, and other costs, everything should be considered. In addition to this, it is also necessary to select the most suitable option keeping in mind your financial requirements. This is one major reason why hiring the services of a home loan advisor is your best bet. According to the research, a number of borrowers have enjoyed the benefits of hiring an advisor when purchasing a home. However, with so many of them available, it is necessary to select the most suitable option. Therefore, below we have mentioned some of the must haves you should consider when hiring an advisor. Check them out.
Get in touch with an experienced home loan advisor. Unsplash
Must haves in a home loan advisor
● An experienced home loan advisor: Get in touch with a home loan advisor who has all the experience to perform the service with you. The home buying procedure is not an easy one. In order to avoid all the unwanted hassle, it is important to contact a home loan advisor who works in your favor. Browse through the internet and search for advisors in your locality. Once you come across a suitable option, make the next move and contact them in person.
● A licensed home loan advisor: There are some people who claim to work wonders for the borrowers. However, these are ones who either have zero or less knowledge in the industry. Therefore, make sure to contact someone who has the license. It is basically the license that gives an individual the authority to conduct the service for the borrowers legally.
Browse through the internet and search for advisors in your locality. Pixabay
These are some of the must haves you should take into consideration when planning to hire the services of a home loan advisor. Make sure to keep them in mind. Along with all these considerations, also contact someone who provides home loan options with low down payment. There are buyers who are not able to make higher down payments, especially when they are purchasing a house for the first time. If you are one of them, take this factor into account and make the next move.
The Final Thoughts
These are some of the factors you need to consider when searching for a home loan advisor. Now that you are familiar with them, it is time to make a move. Keep all the information in mind and land a suitable option for a home loan advisor.
(Disclaimer: This is a sponsored article and includes some commercial links.)
(Keywords : Home loan, advisor, mortgage, payments, hire, hassle, legal, industry, dream, purchase, people)
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A home improvement loan will prove to be a fruitful choice of finance when you need to renovate your home. A home loan is a good choice of finance for those who need money to fix their home or upgrade some facilities. From a long term perspective, it can be a promising decision to carry out the renovation of your home.
As compared to a personal loan, a home improvement loan will prove to be a wiser financial decision. After weighing the financial benefits and tax benefits of a home improvement financing loan, you will consider it a fairly good decision. A secured home improvement loan offers greater advantages as compared to an unsecured loan, which poses many downsides.
Here are some of the top benefits of home improvement financing for contractors, which make it a lucrative option.
Why Should You Opt For A Home Improvement Financing Loan?
Lower Rate Of Interest
Depending on your loan provider, you will be able to score a home improvement finance loan at a fixed rate of interest. Usually, this rate is lower than the rate of an unsecured loan, which can cost you a greater amount.
In contrast, even a personal loan can cost you higher than a home improvement financing loan. Since the rate of interest is fixed, you will save a greater quantum of money in the long run.
As a result, it is highly rewarding for you to pay a low rate of interest on the amount of the loan. Moreover, paying back the loan amount itself does not become a tedious task, which is highly possible in the case of an unsecured loan.
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Benefits Of Tax
It is possible to take taxation advantages on the amount of loan which you will be paying for the purpose of home improvement. Payment of interest on the amount of loan taken by you also commands tax benefits, which makes it fruitful for you to consider it as a source of finance for the purpose of home improvement.
Overall, the cost of borrowing will be reduced to a large extent if you consider such loans as a source of finance for home improvement.
As compared to several other types of loans, there is fairly less paperwork involved in taking a home improvement loan. Most lenders only demand basic documents to authenticate your identity and the purpose for which you are taking the loan.
In addition, they may demand to check your income proof, the title deed of the property, and a few more documents. However, it is still lesser than the documents required to be furnished when you take another type of loan.
The good thing about taking a home improvement loan is that there is very less stringency regarding the use of funds. A home improvement loan means that you can use the fund obtained from the lender in a variety of ways. So, depending on your requirement, you could use the funds to extend a single room or carry out a repair job.
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Additionally, you may also be able to use these funds in other ways. You may simply use it for the purpose of upgrading one or more systems or facilities at your home.
Using a secured loan to carry out such changes at your home and benefitting from it is an advantage that makes home improvement financing loans highly suitable for most people.
More Options To Choose A Lender
Taking money for unsecured loans or selecting some of the loans can pose a serious limitation in terms of the lenders. You may have very few options to select your loan provider. However, this is not the case with a home improvement financing loan.
Depending on certain factors, such as your purpose, income levels, and location, you may have a wider choice of lenders. Thus, you can select a feasible option when it comes to selecting a provider for a home financing loan.
Taking a secured loan such as this one means that factors like your credit history will pose a little impact on your choice of lenders, even if you have a certain sum of salary earning capacity and a bad credit history.
You will still be able to take a secured loan. Moreover, it is also possible to select a loan on the terms that suit you the best.
Lower Every Month Instalments
Taking a home improvement loan may not put unnecessary pressure of repayment on your shoulders. Moreover, added to this is the advantage of a low-interest rate on which you can borrow the loan.
Together, these factors imply that you will have to bear the liability of a home improvement loan. But, the same will be completed at lower installments every month. This will keep you away from the pressure to fulfill the financial obligation each month.
For a salaried person, it is easier to service a loan on these terms than to get an unsecured loan. It will not only come at a larger rate of interest but also pose unnecessary pressure to fulfill it.
Quicker Processing Time
As compared to various other types of loans, a home improvement financing loan is processed fairly quickly. Even if you obtain the loan from one of the best HVAC financing services, you will find that the processing time for your home improvement financing loan is a short one.
This happens mainly because the overall documentation required to process a home improvement financing loan is less. Hence, it does not take a lot of time for the lender to authenticate all the details. And thus, they can give a thumbs up to the loan approval.
Thus, it is easier to get started with the process of home renovation without having to wait around a lot.
It can be vital to improving your home for many reasons. A continuing default in one or more features of your home may degrade its life. Later, it may impact the value it fetches years later.
Hence, it is wiser to undertake a home improvement activity when the demand comes up for it. Given the benefits of availing of a home improvement financing loan, you can get started with the process right away.
A home loan is a long-term financial obligation that requires you to be consistent with your repayment. Your EMIs are based on the interest rate and type of home loan you’ve opted for apart from the total loan amount. You should know that while home loan interest rates change every now and then, it is your responsibility to figure out whether you’re getting the best value for your money. If you aren’t, it might be time to refinance your loan. You can do this by opting for the home loan balance transfer feature with another lender that offers a better, more suitable interest rate.
To better understand why a home loan transfer is the best at reducing home loan payments, look at its advantages below.
You can Reduce your EMIs
While you may have used a home loan EMI calculator before availing your home loan, the continuous EMI payments may start weighing down on your pocket as you age. This is especially hassling when you are aware of other lenders offering better interest rates. A balance transfer to one such lender helps you enjoy a lower interest rate that is charged on your principal amount which automatically results in lower EMIs. Not only is this easier on your pocket, it also helps you save on interest expenses significantly.
You can Reduce your Tenor
When the interest rate on your principal amount drops giving you lower or cheaper EMIs, you may be able to choose a shorter tenor. In this case, you can choose to pay EMIs of the same amount as you were paying earlier, but with a shorter tenor, or you can choose to increase your EMIs by an amount that you can afford. With a shorter tenor, you are free from debt faster and your total interest reduces.
Things to Keep in Mind when You opt for a Home Loan Balance Transfer
Tenor of your Current Home Loan
Before you think of refinancing your housing loan, consider the current stage of your repayment. Generally, it is advisable to opt for a balance transfer during the first half of your repayment simply because the interest component on your EMIs is larger than the principal component during this time. This means that transferring early, and at a better interest rate, could help you reduce your total interest.
For instance, say you have a house loan of Rs.60 lakh for 240 months at an interest rate of 11% taken in the year 2001. Say you have already paid off EMIs for the first 100 months and plan to refinance the loan in 2019, when you have 140 months left on your tenor at the new rate of 8.85%. Your total savings in this case will be Rs.10.34 lakh.
Top-up Loan Feature
When you refinance your home loan, lenders typically offer you a top up loan. This loan is in addition to your housing loan and the amount you’re offered depends on your housing loan repayment history. Some lenders have the amount capped, for instance, Bajaj Finserv offers a top-up loan up to Rs.50 lakh. This loan has no spending constraints and can be used to meet any financial goal.
The Cost Analysis of Availing the Home Loan Balance Transfer
In an attempt to save money, always consider the cost of refinancing your home loan. While it may offer great benefits, you’re required to pay fees to both, your current lender and new lender in the process. Factor all of these costs in and gauge whether or not this switch is actually going to save you money.
Always bag opportunities that ease your financial obligation, but do so only after thorough research. When you opt for the Bajaj Finserv Home Loan Balance Transfer, not only do you stand a chance to get a more affordable deal, but you also enjoy the luxury of transparency. This means that there are no hidden charges that can stress your finances. Additionally, if you opt for a floating interest rate housing loan when carrying out a balance transfer, you enjoy zero part-prepayment and foreclosure charges. To avail of this feature and all its benefits, check your pre-approved offer to get access to an easy home loan refinancing option.
- Flexi Hybrid Home Loan allows paying only interest as EMI
- Principal holiday period of 4 years
- The principal and interest after 4 years paid only on the amount utilised
- Flexibility of flexi-interest and flexi term loan in a single loan
With the Reserve Bank of India (RBI) hiking repo rates in its bi-monthly monetary policy review by 25 bps, interest rates of several loans have already started tightening. Though aimed to control inflation, it’s anticipated that home loan borrowers will bear the brunt of the latest move by the apex bank.
Hike in repo rate would push up home loan interest rates and subsequently the EMIs. The move might be a dampener if you are a first-time home loan borrower. However, with Bajaj Finserv Flexi Hybrid Home Loan, not only do you get the requisite funds to buy your dream home but are also relieved of heavy EMIs. Read on to know more.
Payment of only interest component as EMIs
A regular home loan, on a fixed interest rate, taken from a financial institution consists of the interest and the principal component. During the entire loan tenor, the EMI remains constant. Though the interest and the principal ratio varies during the loan tenor, the EMI remains fixed.
However, with Bajaj Finserv Flexi Hybrid Home Loan, during the initial tenor, you pay only the interest as the EMI and nothing for the principal. The principal holiday period, where you need not pay anything towards the principal, lasts up to 4 years. Only after 4 years, the EMI will constitute the principal and the interest component.
So, for instance, if the EMI of your home loan is Rs.30,000, with the interest component amounting to Rs.20,000, during the initial 4 years, you need to pay only Rs.20,000. Only after 4 years, you need to pay the principal component of the EMI. This not only reduces your EMIs but also help you better manage your finances. Also, during the interest-only period, there’s no reduction in the loan limit.
Principal and interest only on the amount utilised
Unlike a regular home loan where you need to pay interest on the entire loan amount disbursed, in case of Flexi Hybrid Home Loan, after the principal holiday period of 4 years for the balance tenor, the EMIs would consist of the principal and the interest – only on the amount utilised from your approved loan limit and not on the entire limit.
For instance, if your approved limit is Rs.25 lakh for a tenor of 15 years, and you use only Rs.20 lakh from this limit, after the principal holiday period, from fifth year onwards, you need to pay the principal and the interest only on Rs.20 lakh. This further brings down the EMI and helps in savings in the long-run.
High EMIs – No longer a hurdle
Thus, with a Bajaj Finserv Flexi Hybrid Loan, high EMIs are no longer a hurdle in purchasing your dream home. Irrespective of hike in home loan interest rate, following RBI’s move, this new and innovative home loan offering helps you buy your dream home with utmost ease.
Even if you are early into your career, where generally income levels are low, you can go on and address the crucial life goal of buying the home of your choice. The principal holiday period of 4 years not only keeps your EMIs low but also ensures you are able to take care of day-to-day expense of running a household. Apply for home loan today and enjoy the joys of owning your own home.
With pre-approved offers from Bajaj Finserv on a gamut of loans including business loan, personal loan, etc., availing finance is easy and quick. No long queues and lengthy paperwork. Just share a few basic details to know your pre-approved offer within seconds.