Benefits to the Home Buyers
The challenge of buying a home for the first time can seem so daunting that it's tempting to either just go with the first place in your price range or continue to rent. Budget has always been a constraint to take the first step towards the home buying process. There are a number of limitations that are imposed on a borrower's eligibility that make it a little difficult for the applicant to access the amount of money that they require to meet their home buying needs. Often, the applicants, to bridge that financial gap, end up taking personal loans or gold loans or altogether postpone the home buying process.
Mortgage Guarantee backed home loans helps improve the affordability to buy a home, provides early access to home-ownership, and adds flexibility in household financial planning.
- It allows borrowers access to improved cost of credit by increasing the possibility of getting a loan from one of the large mortgage lenders, whose rates are among the lowest in the market.
- MG backed home loan increases the loan eligibility, helping borrowers to secure a home loan of higher amounts through longer tenures and lower EMI’s
- With higher loan amount eligibility, the borrowers:
- Do not have to postpone the purchase of the home, or
- Depend on other secondary sources of funds like personal loans, gold loans, which are of shorter durations and significantly more expensive.
- MG backed home loans helps in expanding home-ownership opportunities for borrowers with minimal equity capital (an attribute that is especially powerful for the first-time homebuyers with lower equity savings).
- Providing borrowers the option to purchase a home with a lower down payment, thereby freeing up their resources to make home improvements, purchase furniture or household goods, maintain their savings or investments, etc.