Do you want to move into a new and bigger home and looking to apply for a home loan to fund it? Hold on if you already have an old property.
Why? It is because you can easily borrow huge funds against your old property at an affordable rate. What’s more, you can continue to be the owner of the property and don’t have to sell it.
Even if you avail a home loan and a mortgage loan together, you can still ease your housing finance burden with it. Read on this article and know more!
A mortgage loan or a loan against property is an incredible funding option that can let you borrow a large amount of up to Rs.10 crore.
Just like the home loan, it is also a secured option. Hence, the offered mortgage loan interest rate is lower. You can even get a longer tenor to repay the loan without being stressed about it.
Manage Home Loan Easily with the Mortgage Loan
- Use the Funds to Put Down a Heavier Down Payment
When you avail a home loan, you also need to put down 15-20% value of the new home from your own pocket. A lender can finance up to 80-85% of the home’s value. The rest of the money needs to be given by a borrower as the down payment. However, when you avail a mortgage loan against your old property, you can use the loan amount to put down 30-40% home loan down payment. This way, you may reduce the home loan principal and interest rate and pay lower EMIs.
Additional Read: Home Loan or Loan Against Property for Lower Interest Rates
- Use the Money to make Prepayments or Foreclose the Loan
When the mortgage loan can give you up to Rs.10 crore, you don’t need to keep repaying the home loan over a tenor and pay interest costs. Yes, you can either make larger prepayments or simply foreclose the loan before the actual tenor. It would help you ease off the home loan burden sooner than earlier. Most leading banks other lenders don’t charge for making prepayments or foreclosing the loan.
- Use the Mortgage Loan Amount for other Purposes
When you mortgage your old property to avail a loan against property, you have the freedom to use the funds the way you like it. Hence, you can use it as per your own wish and needs. Most of the people who avail the mortgage loan use the loan money for:
- Loan and other previous debt consolidation
- Planning a dream vacation
- To meet the needs of an urgent medical emergency
- To send children for quality education overseas or within the country
- For having a grand wedding
- For expansion of the business
- For all other personal usages
You just saw how you could use the mortgage loan taken on an old property to ease the home loan for a new home. You can also do the same if you have a property and lessen your home loan obligation faster.
To check out your pre-approved loan offers now, you will need to share your basic details like name and contact number on loan against property application.
Bajaj Finserv offers pre-approved offers on the mortgage loan, loan against property, personal loan, home loan and more. Such offers will simplify the loan process and make it fast.