How Much Down Payment is Required to Book a New Home?
Why should you care about Vastu while buying a house?
Hey there, future homeowners! So, you've found the perfect home sweet home and are ready to take the plunge into homeownership. But hold your horses! Before you start envisioning yourself sipping coffee on the porch of your dream house, let's talk about one crucial aspect: the down payment.
Ah, the down payment – that initial chunk of change you need to secure your dream home. But how much do you really need to cough up? Let's break it down for you.
Usual Criteria:
First things first, let's talk about the usual down payment criteria. It typically varies based on the value of the property you're eyeing. Here's a rough estimate:
Property Worth 30 Lakhs or Below: Approximately 10% down payment.
Property Worth Above 30 Lakhs up to 75 Lakhs: About 20% down payment.
So, for instance, if you've set your sights on a flat worth 50 lakhs, you'd be looking at making a ten lakh down payment. But hey, here's a little tip: if your financial profile is top-notch, some banks might just let you book your property with a down payment as low as 5-10%. Sweet deal, right?
Loan Eligibility in Nationalized Banks:
Now, let's talk about loans. Nationalized banks typically have your back when it comes to financing your dream abode. Here's the scoop: on properties worth Fifty lakhs, these banks usually offer funding up to 80% of the property's value, which translates to a cool 40 lakhs.
Loan Eligibility in Private Banks:
Private banks, on the other hand, play by slightly different rules. They take into account not just the stated value of your property but also its market value. So, if your property is officially valued at 50 lakhs but the market deems it worthy of 70 lakhs, the bank would be willing to sanction a loan based on the higher market value – in this case, 80% of 70 lakhs, totaling 56 lakhs.
But wait, there's more! Some private banks may even consider offering loans up to 150% of the documentation value of your property, which could stretch your loan eligibility to a whopping 75 lakhs. However, there's a catch: your loan eligibility is capped at whichever amount is lower. So, according to our considered example, that would be around 56 lakhs.
So, there you have it – the lowdown on down payments and loan eligibility when it comes to snagging your dream home. Remember, understanding these essentials can help you navigate the home-buying journey with confidence. Happy house hunting!