INTERVIEW QUESTIONS LOAN HOME LOAN DETAILS

Question: I am planning to opt for a home loan but I am slightly short on the down payment money. Can I opt to pay down payment in installments in any way?

Answer: Banks do not offer a 100% loan on any property and the loan to value ratio for home loan ranges between 80-85% for most cases. One needs to raise the remaining money from his own pocket. Now in your case you haven’t mentioned the amount of down payment you require or the total amount of your possible home loan. Considering you are short by a small amount, it is always a good idea to wait for your home loan till you raise the money upfront.

In case you are short by a large margin and you are considering a home loan for a property being developed by a reputed buyer, you can request your bank to exercise a proportionate release option. Since banks have a mutual understanding with reputed developers they do sometimes allow down payment money in installments rather than in a lump sum amount. Unfortunately not all banks and developers enjoy such a close collaboration and the option may be limited to a few developers and banks only.

Banks do not offer a 100% loan on any property and the loan to value ratio for home loan ranges between 80-85% for most cases. One needs to raise the remaining money from his own pocket. Now in your case you haven’t mentioned the amount of down payment you require or the total amount of your possible home loan. Considering you are short by a small amount, it is always a good idea to wait for your home loan till you raise the money upfront.

In case you are short by a large margin and you are considering a home loan for a property being developed by a reputed buyer, you can request your bank to exercise a proportionate release option. Since banks have a mutual understanding with reputed developers they do sometimes allow down payment money in installments rather than in a lump sum amount. Unfortunately not all banks and developers enjoy such a close collaboration and the option may be limited to a few developers and banks only. Source: CoolInterview.com

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