Everyone has dreams and wishes they want to fulfill at various stages of their life. Be it travelling to the mountains, participating in adventure trips, renovating your house as per your desire, having a dream wedding with numerable functions or buying expensive goods and services; the bucket list in unending. People set a timeline and try to fulfill all their wishes in the set deadline. But many times lack of finances can be the reason why you can’t fulfill your bucket list.
But there is one smart way to fulfill all your expensive wishes on the bucket list: get help of your house!
You can leverage your house and use the funds to fulfill your financial goals. Here are 3 easy ways to do so…
Loan against property
By taking a loan against property or LAP you can get maximum funds to fulfill your most expensive wishes. In LAP you have to mortgage your residential or commercial property to the bank/NBFC to get loan against it. You can use the property while it’s being mortgaged at the loan lender. The original documents of the property are kept with the loan lender until you pay the loan back within the tenure. The tenure in loan against property ranges from 10-15 years and interest rate starts from 9.50%*. Banks and NBFCs finance 80%-90%* loan amount of the current value of property.
Top up loan
If your property is already under mortgage for home loan or LAP, you can opt for a top up loan. Top up loan allows you borrow additional amount on your existing home loan. This is also known as second mortgage loan. The eligibility, documents required and interest rate in top up loan depends on how much of the primary loan you have paid off and your credit score while doing so. By having a top-up loan you can easily fund your beloved bucket list.
Reverse mortgage loan
Those who can’t fulfill their wishes in their youth due to various personal and professional obligations, tend to do so post retirement. But there is no earning source at that stage. Even your pension and savings are used to pay for monthly bills. So should you just throw your bucket list away? No, instead you can opt for reverse mortgage loan. Reverse mortgage loan is a new type of loan in the Indian loan industry. You can mortgage your house to the bank/NBFC and they will pay you monthly EMIs. You can use those funds to fulfill your wishes. Upon your death, bank/NBFC sells the property and recovers the EMIs and its interest rate they provided you. If the funds remain, they are given to the person/people you have listed in the loan agreement.
So leverage your home today and complete your bucket list!