While opting for a home loan to buy their dream home, many loan borrowers are unaware of a multitude of options available in today loan market. Although they do proper research, still there are many hidden home loans which are more beneficial to them, but because of less knowledge it gets skip in between only.
So, here are six types of loans which many loan borrowers have never heard off:
Teaser Home Loan
A teaser home loan is a type of special loan that offers low-interest rates for a fixed duration of time and then it changes back to normal interest rates. In the last few years, many banks have launched such a scheme to help loan borrowers.
If a lender offers such a scheme, then it’s a good idea especially for them who are not able to pay such a high rate of interest and EMI during the initial years of loan borrowing. Once you achieve financial stability, the changing interest rates EMI can be easily paid off.
Bridge Home Loan
Suppose you want to shift from smaller house to bigger house and you fall short of cash for the purchase of new house, at this point of time a bridge home loan comes to loan borrower’s rescue.
A bridge home loan is a short-term loan that is taken between the purchase of a new house and sale of the existing house. The tenure of this loan is mainly 1-2 years. In such type of loans, a borrower just has to pay the monthly interest EMI whereas the principal amount can be paid at the end of the tenure. Also, it is much better than a personal loan as the interest rate is much less than what charged by banks during personal loan.
Proportionate Release Home loan
A proportionate release option is for those loan borrowers who can’t pay down payment in one go. In such cases, banks come in a mutual agreement with the developer that the full down payment will be paid by the developer to the banks and then they will proportionately release the down payment amount. But, keep in mind that all banks do not follow this and it happens only in case of those developers who are known for their timely delivery and have a clear background.
Second Mortgage Loan
It is that type of loan which is taken on a property that is already mortgaged. It means that you have already taken loan on the existing property but is falling short of money and need additional funds than you can take a second mortgage with the same bank or NBFC.
Most of the time borrowers take this loan for renovation or repairs that may be a small or large amount. Also, banks have full authority to pass or reject the loan that basically depends on credit score, repayment cycle of the current loan, income details, etc. However, the interest rate charged on this loan is high as compared to the earlier one.
Flexi Pay Home Loan
Suppose you are at the start of your career and not in a condition to pay high EMIs of the home loan. In such a case, you can opt for a Flexi Pay Home Loan. Under this, you can delay the start of your EMI payment by just paying the interest and not the principal amount.
Here bank offers borrower a moratorium period in between 36 to 60 months where you just have to pay the monthly installments of the interest rate. Once this period gets over, you have to start with the regular EMI payment with principal amount. Also, a flexi pay home loan is available to salaried professionals between 21 to 45 years of age.