Building a house must be the first thing on your list right now. Nobody wants to spend his hard-earned money on paying rents for a certain apartment that we don’t think as a home. And not to forget the pain of continually changing it. However, owning a place is not easy; it takes a big chunk off from your savings to pay up the down payment. Now, it is also possible that you might not have the money to make up for the down-payment, but that should not stop you from having a home of your dreams.
So, you don’t have money, and definitely, home loans are not going to help you either, but personal loans are always there, which you can use to pay up the down payments. You can easily get a personal loan to take care of some of the expenses while you are building your dream house. Here are five ways to use a personal loan as a down payment.
- Assessing your Finances
You are taking a personal loan and a home loan, you have to pay two EMI. Look into your finances and assess if you can repay two loans, along with all other regular expenses, emergencies, other policies you might have taken, and more things simultaneously.
- Evaluating the rate of interest
Rates of interest on home loans are usually lower than those on personal loans. The rate of interest on Personal Loans will be around 11 to 20 percent while you can avail of a home loan at 8.5 to 9 percent. If you have a financial status that can bear the load of high-interest rates, go ahead.
- Your Funds are Untouched
Getting a loan, you will not have to sacrifice the savings you have been doing for so long for your medical emergencies, child education, vacation, or to buy something. Personal loans become a savior of your funds, and while you repay the loan every month, you still have your funds intact.
- Smart Risk-Taking
Taking the loan for paying off your down payment alongside a home loan, you must make sure that both the EMI’s do not exceed more than 50% of your net monthly salary. You must calculate it all and then opt for a loan. Meanwhile, if that is not a case, you can always choose to pool some funds from your fixed deposits or any other avenue you have invested in.
A personal loan can get you your house of dream, and you must look out for a financial institution that can help in the course. By doing the math right and making smart choices, you will be able to manage both the EMI’s well and be able to live in a house of your dreams. Meanwhile, you must also take in mind that you also have to do some saving alongside paying the EMI’s. Owning a house also comes with unforeseen maintenance expenses that you have to meet out and manage.