Mortgages always make more sense!

Mortgages always make more sense!

A home loan has multiple uses right from the basic property purchase itself to debt consolidation and funding your business or personal needs as well


When you purchase or own a property, it is a concrete asset with multiple benefits. In times of financial crisis or any personal emergency, this asset can be leveraged to raise funds and that too at a very reasonable rate of interest.

From the basic home mortgage loans to top up loans, balance transfer loans to loans against property (LAP), there are several financial products being offered. Since they entail a much lower rate than a personal loan, they provide a great opportunity for debt consolidation as well.

In fact, experts recommend taking a home loan even if you have the money available in hand to purchase a flat. For starters, there are many investment avenues that could give you a greater financial yield on the money that you have in hand at present. This could be used to set off the home loan EMIs.

Moreover, a loan against property or top up loan can be used to clear debts like credit card bills or personal loans, which are likely to have higher rates of interest than a property mortgage.

Key benefits

Floating rate home loans do not attract part payment charges or pre-closure charges giving one the flexibility of making payments at any point of time without penalty. Moreover, availing a home loan helps substantially when it comes to planning your taxes. Opting for a home loan also ensures the due diligence of the property for which loan is applied. One also gets a fair market value of the property.

Multiple advantages

Those who have been steadily repaying their home loan find themselves eligible for quick and easy access to funds, when needed for business requirements through top-up loans on the existing property, as these loans are cross-collateralised. The benefits here are not just a lower interest rate but also greater ease in repayment and the simplicity of managing one single loan.

Switch lenders

If you have purchased a property earlier and the lending institution is still charging you a high rate of interest on the home loan, you can get a balance transfer loan from another bank or institution at a lower rate of interest. So the key here is to leverage your concrete asset as and when needed.