Yes, it is mandatory. No lending institution can fund 100% of the cost of the house. Therefore, you must pay a significant amount as a down payment.
While buying your dream house, paying some amount in advance has other benefits too related to EMIs.
It is a certain percentage that you have to pay upfront to the seller. The lender evaluates several factors before sanctioning the loan.
As per the RBI guidelines, a lender can fund up to 90% of the total cost of the property. Alongside this:
- Property below 30 lakh
- Maximum 90%
- Property between 30-75 lakh
- Maximum 80%
- Property above 75 lakh
- Maximum 75%
- It is affordable
- Less stressful for your regular savings
- Helpful in managing the EMIs
- Reduced loan amount, thus, lower liability
- Chances of better interest rates and lower EMIs
- Shorter repayment tenure
Depending on your financial capacity and other expenditure, selecting a down payment is a smart choice. With PNB Housing, you can get the most affordable Home Loans.