When ever we speak to a home buyer for a home loan, the answer is let me finalize the property first and then we will apply for the loan.
In ideal scenario, you should get this home work done as this gives you the added confidence about buying a property well knowing in advance that you are entitled to an X amount as a Home Loan and you will have a Y amount as an EMI to pay every month or year. With a lot of paper work, CIBIL checks etc. you should not be under double pressure when you are buying a property.
A few developers even give a benefit in price if you go with a pre approved sanction letter. Imagine you paying around 11236 for a sanction and you walk away with upto 10 times as a benefit upto Rs.1,12,360 as discount from our New Property Buying – Get it Right – Series offers by select developers.
For further details please feel free to call me on 9820030685 or email firstname.lastname@example.org
The 20:80 Subvention Schemes are back in the market with a full force with Top Builders wanting traction in the Projects. It is a win win situation for all, but this time purely the consumer is the winner, if the Developer has not put the entire burden on the Client.
Till Mid 2013, the 20:80 subvention scheme meant that the Developers could get 80% of the Total Consideration Value of each flat sold funded in advance from the Bank and the developer would service the Pre-EMI till Possession or till the time he has opted for. The RBI put a stop to this, seeing irregularity and the risks involved if the Developer would take all the money upfront and leverage against other property funding etc.
The Home Buyers were at an absolute benefit in such schemes and since the time it stopped, the Mumbai Property Market saw less traction.
In December 2014, suddenly, we see an increased Traction in the Property Market owing to the New 20:70, 25:75 and 30:70 Schemes. The Banks who are funding these projects are working strictly as per the RBI Policies, where in they will give to the Developer funding which is Construction Linked. They will only be able to get funds from the Bank once they complete a slab and mostly Top Developers qualify for most of these schemes.
This is again very good for Home Buyers or Investors as by putting their own 20 to 30% amount they are not investing any more and then the rest of EMI starts at the time of Possession. At the time of Possession, one can close the loan and pay with own funding depending on each individuals needs.
Also, the Buyers Risk for delayed possession gets mitigated under such schemes.
As per an estimate there are currently 15-20 such schemes in the market. Please feel free to call us or mail us for more information.
Author – Sandeep Sadh – Mumbai Property Exchange Pvt Ltd.