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 within your budget or continue to rent. Budget has always been a constraint to take the first step towards buying home. There are several limitations that are imposed on a borrower's eligibility that make it a little difficult for the borrower to access the required amount of money to meet their home buying needs. Often, to bridge that financial gap the borrowers end up taking personal loans or gold loans or altogether postpone home buying.
Mortgage guarantee backed home loans serve as a boon to the home buyers through providing the below benefits.
Mortgage Guarantee backed home loans help to improve the affordability to buy a home, provides early access to home-ownership, and adds flexibility in household financial planning.
Mortgage Guarantee allows borrowers to avail loans from a wider cross-section of lenders. This provides opportunity to borrow from lenders with lower interest rate offering.
MG backed home loan increases the loan eligibility helping borrowers to secure a home loan of higher amount through longer tenures and lower EMIs. As loan eligibility increase, home- ownership possibility expands with minimum down-payment.
This is especially beneficial for first time borrowers with lower saving.
Due to enhanced loan eligibility through MG backed home loans, the dependence on expensive source of funds like personal loan or gold loan goes down significantly.