save money for new home's down payment

How to Save Money for New Home’s Down Payment?

Owning your own house is a very big deal for any Indian family. A family works day and night to fulfill this dream and various banks and NBFCs help them to make their dreams come true. Buying a home surely comes expensive as it has many hidden charges included. Mostly financial institutions help you with that but the down payment of the house has to be done by the prospective owners by using their own funds. Banks do not pay for down payment under the home loan schemes.

A down payment for a house means the prospective owner has to pay a minimum 10% of the wholesome amount of the house. The buyer has to pay this 10% amount from his or her savings or by other means. Along with this down payment, the buyer also has to pay other fees like property taxes, registration charges, stamp duty charges and transfer charges. Paying this huge amount can be itself a burden on the buyer. But there are a few things you can do to ease this burden.

  1. Make a Financial Plan:

When you start planning to buy a house, first thing you should do is make a financial plan. You should consider your CIBIL score, your possible income fluctuations in future, your expenditure, people who can pitch in for the repayment of home loan and their shares. According to all these financial digits you should make a timely deadline and make sure that you will have the down payment amount ready by then.

  1. Opt for Monthly Savings:

After making a financial plan, you should start saving the money. You can save the money in bank or in mutual funds. You can also utilize the interest rate you will get on this saved money. Saving on monthly basis will give you a glimpse of life with EMIs and will also help you to save enough for a down payment in time.

  1. Take Help From Family and Friends:

There is nothing wrong in asking help from your loved ones’ to purchase a house. Even if you make a financial plan and save every month, you may not have enough funds for a down payment. You can pay back the borrowed money to your friends and family once you have enough money at your end.

  1. Take a Loan:

You can take a personal loan or a loan against property (against your currently existing property) to pay for the down payment of a new house. If you have a strong CIBIL score, you can get a loan for a down payment and can pay it off along with the second house loan.

So opt for a home loan, personal loan or LAP! Click here to know more

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