When you think of a home loan, the biggest fear is the vast EMIs that one has to pay every month to own new property. Houses make amazing long-term investments and provide great value for money.
Instead of bearing the brunt of having to acquire a loan for the entire value of your new house, consider mortgage loan. When you mortgage an existing property and get a loan, there are lots of benefits such as reduced monthly instalments, better interest rates and at the end of term, you will be a proud owner of two amazing houses.
Benefits of a Mortgage Loan
By pledging an existing property, you can immediately move to a new home with modern amenities. The monthly instalments will be lesser because of the lower interest rate. The mortgage loan tenure can be pushed as long as 15 years.
As you or a family member will be the owner of the property, the loan process can be done quickly with minimum documentation. The lender will require your income proof residential and ID proof along with bank statement for it to be processed.
The advantage is that you can speed up the process to avail loan against your property and can avail up to 60% of the property value. It helps you retain your current house and buy a new one with a loan that is more feasible than the conventional home loan process.
Some lenders may even provide loan tenor up to 20 years which will allow you to pay it in easy monthly instalments and even avail foreclosure if they facilitate it.