Owning a Home: A Milestone and a Smart Financial Choice
For decades, owning a home has symbolized success and a significant life achievement. However, choosing the right home loan is just as crucial as selecting the perfect home. A well-suited home loan can make your repayment journey smooth and stress-free, while an unsuitable one can lead to financial insecurity and hurdles in securing future loans.
One common question that arises for many prospective homeowners is: Can I get a 90% home loan?
In this article, we will explore the factors influencing your home loan eligibility and the Reserve Bank of India’s (RBI) guidelines on loan percentages. Let’s dive into the essentials of finding the perfect home loan for your dream house with Vizzve Financials.
Home Loan Approval Criteria: Finding the Perfect Fit
Choosing the right home loan is like finding the perfect key to unlock the door to your dream home. It is a decision with long-term financial implications. Here are five key factors to consider when selecting a home loan:
1. Compare Interest Rates
Home loan interest rates vary between lenders and across different loan products from the same lender. Factors like your repayment capability, credit score, and the loan amount play a role in determining your specific rate. Comparing and assessing interest rates from various lenders is essential.
Vizzve Financials offers competitive interest rates on home loans, ensuring affordability and flexibility to make your dream home a reality.
2. Pick an Optimal Loan Tenure
The tenure of your home loan significantly affects your Equated Monthly Instalments (EMIs). While a longer tenure reduces your monthly EMI, it increases the overall interest paid. Conversely, a shorter tenure results in higher EMIs but saves money in the long run. Carefully consider your financial capabilities and long-term goals to choose the tenure that suits you best.
3. Verify Processing Charges
Processing fees cover costs like loan application assessment, property valuation, and verification of your information. These charges vary between banks, so it’s important to understand the fee structure upfront to avoid surprises. At Vizzve Financials, we ensure transparency in processing charges, keeping the loan process hassle-free.
4. Examine Foreclosure Norms
Foreclosure refers to paying off your home loan ahead of the scheduled tenure. While some lenders charge additional fees for early closure, Vizzve Financials offers customer-friendly foreclosure policies, allowing you to close your loan early without unnecessary penalties.
5. Assess Non-Financial Aspects
Beyond financial terms, consider the quality of service your lender provides. Factors like ease of access, post-disbursal services, and customer responsiveness are crucial. Vizzve Financials takes pride in offering excellent customer support and digital services for a seamless experience.
High Loan-to-Value Mortgages: Understanding the Components
A home loan typically comprises two main components: the loan percentage and the down payment.
Loan Percentage
The loan percentage is the portion of the property’s value that the lender agrees to finance. Banks and financial institutions are generally not allowed to lend 100% of the property value, as per RBI regulations.
Down Payment
The remaining portion of the property’s value, which you must pay upfront, is the down payment. This amount forms a critical part of your initial investment in the property.
RBI Guidelines for Loan Percentages
The RBI’s guidelines determine the maximum loan-to-value (LTV) ratio based on the property’s value:
| Property Value | Maximum Loan Percentage |
|---|---|
| Less than ₹30 Lakhs | 90% |
| Between ₹30 Lakhs and ₹75 Lakhs | 80% |
| Above ₹75 Lakhs | 75% |
Thus, obtaining a 90% home loan is possible if the property value is less than ₹30 lakhs.
5 Tips for Choosing the Right Home Loan with Vizzve Financials
Compare Loan Interest Rates: Interest rates differ across lenders. With Vizzve Financials, you get attractive and flexible interest rates tailored to your financial profile.
Choose an Optimal Loan Tenure: Whether you prefer lower EMIs or saving on interest, we help you pick a tenure that aligns with your needs.
Check Processing Charges: Avoid hidden costs with Vizzve’s transparent processing fee structure.
Understand Foreclosure Norms: Vizzve’s customer-first policies ensure minimal penalties for early loan repayment.
Consider Non-Financial Factors: Enjoy proactive support and digital tools that simplify your loan journey with Vizzve Financials.
Conclusion
The rise in property prices across India highlights the importance of selecting the right home loan. It’s more than just a financial transaction; it’s a step toward fulfilling your aspirations. With Vizzve Financials, you gain a reliable partner offering competitive rates, flexible tenures, minimal paperwork, and exceptional service.
Whether you’re a first-time homebuyer or planning to transfer your existing housing loan, we’re here to make your dream home a reality.
Say hello to your new home with Vizzve Financials’ easy home loans!