Purchasing and moving into a dream house would generally rank among the
top three things on the wish list of most people. After all its what been
proved by Maslow’s Law of Hierarchy as well. That entire house hunting
every few years, grumpy landlords, killing rents would be a thing of the
past. Hey, you even get to use nails to hang your favorite paintings and
pictures. Don’t you???
One can take different types of home loans like Bridge Loans, Home
construction Loans, Home Equity Loans, Home Extension Loans, Home
Improvement Loans, Land Purchase Loans etc for different schemes available
in the market. There are different types of home loans tailored to meet
Home Purchase Loans: These are the basic forms of home loans used for
purchasing of a new home.
Home Improvement Loans: These loans are given for implementing repair
works, healing and renovations in a home that has already been purchased.
Home Construction Loans: These loans are available for the construction
of a new home.
Home Extension Loans: These loans are given for expanding or extending
an existing home. For e.g.: addition of an extra room etc.
Home Conversion Loans: These loans are available for those who have
financed the present home with a home loan and wish to purchase and move
to another home for which some extra funds are required. Through home
conversion loan, the existing loan is transferred to the new home
including the extra amount required, eliminating the need of pre-payment
of the previous loan.
Land Purchase Loans: These loans are available for purchasing land for
both construction and investment purposes.
Bridge Loans: Bridge loans are designed for people who wish to sell the
existing home and purchase another one. The bridge loans help finance the
new home, until a buyer is found for the home.
Home Loan comparison of leading banks
|Product||Effective interest rate||EMI||No Of EMIs||Processing fee|
|Canara Bank||9.25||Rs. 18,317||240||0.5%|
|OBC Home Loans||9.25||Rs. 18,317||240||0.5%|
Note-Deals shown below are for an amount of Rs 20 Lakh. The loan type is
floating rate home loan. Loan term is 20 years.