Home Loans 5 New Ways to Get Your Dream Home

If you are living with the perception that home loans in India only come in two flavors: fixed or floating, it is time to wake up to reality. Keeping pace with global developments and in a race to stay ahead in the fiercely competitive mortgage loan market, banks and home finance companies (HFCs) have introduced innovative schemes, which They provide many options to a new mortgage loan borrower. So if you are concerned about getting a home loan, read on; banks may have something special for you.

Fixed or floating rate? Why not both? The classic dilemma of getting a fixed or floating loan has puzzled the average home loan borrower for centuries. Volumes have been written about the advantage one has over the other and this has only added to the confusion. Taking advantage of the situation, banks have started a mortgage loan scheme, which offers the flexibility of choosing a mortgage loan with variable and fixed interest rate options. A borrower may elect to have a portion of his mortgage loan charged at a fixed interest rate and the remainder at variable rates and vice versa.
Tempted by current fixed interest rates? Choose a Smart Solution The unprecedented rise in variable-rate mortgage loans in recent years has led many borrowers to rethink their strategy in favor of fixed-rate mortgage loans. If you are also one of those, who wants to take advantage of relatively low fixed rates, but agrees with the universal opinion that floating rates are better over a long period of time, you can choose a special type of home loan, which charges the fixed interest rates for a specific period (say 3 years) and the floating rate thereafter. Aptly called a smart solution by some banks, this home loan scheme allows you to have the best of both.

Do you need a bigger house? Apply for a Short Term Bridge Loan If you are dissatisfied with your existing home for whatever reason and desperately want a bigger or better home, but do not want to sell your existing home before moving to the new one, a short term bridging loan can be the perfect solution. This loan fills the vital gap and provides a provisional financial agreement between the sale of your old home and the purchase of the new property. These loans can be repaid in easy installments or in lump sum payments after the old house is sold.
You can't afford big EMI now but can you do it in the future? Choose a progressive refund. Banks and HFCs have been woken up late to the fact that people's income levels increase as their career progresses and this improves their repayment ability over a period of time. Therefore, they have decided to offer, what is called a mortgage loan with an additional payment service. This special mortgage loan scheme provides the possibility to set EMIs at a lower level during the initial stages of the mortgage loan and increase with tenure. Some banks even forego the main EMI repayment component during the initial period. So, if you are a young professional or have spent a few years on the job and can convince your lender with visible professional growth, a home loan with a repayment service may be the VA Home Loan.
Can you afford big EMI now but not later? Choose gradual repayment Consider a situation where a couple has obtained a joint mortgage loan in India and one of them will retire in a few years. This can create a difficult situation when it comes to repayment of the mortgage loan, since the repayment capacity of one of the borrowers will decrease after retirement. A home loan with a low repayment plan can go a long way to keep problems at bay in such a situation. The couple may choose to repay higher EMIs during the initial stages of the mortgage loan, when both win and when one of them withdraws, the burden of EMI may be reduced so that the repayment program is still diligently maintained.