![]() It may take months, so you must start saving early. You must allocate a monthly budget towards your down payment. Start monitoring your monthly expenditure and keep track of all the miscellaneous expenses. This may include financial instruments such as fixed deposit accounts, mutual funds, etc. One way to arrange funds for margin money is to liquidate some of your current savings. Now that you know what is margin money in home loan, here are a few ways you can arrange it to purchase your next property. However, if you are unable to do so, there are a few simple methods to arrange it to buy your desired property.Īdditional Read: Know about Margin Money in Home Loans How to Arrange Margin Money to Purchase a Property Therefore, having funds saved up for the down payment means half the battle is won. The margin money or down payment lowers the risk factor for the lender and acts as a sign of trust.įurthermore, a higher amount of margin money lowers your repayment obligation and monthly EMIs. It also depends on the property’s market value and the loan tenure. The percentage of margin money can vary from lender to lender, but it is usually between 10% and 25%, depending on the total loan amount. It is also referred to as the down payment for home loan and is a crucial part of home finance. And, the borrower pays the balance amount to the financial institution during application. ![]() ![]() Mortgage finance only covers about 70 to 90% of the property's total price. Before applying for a loan, you must know the different elements involved in the loan application, sanction, and disbursal process.Īnd one such factor that plays a significant role in borrowing finance is margin money! If you don’t know what is margin money, read further to find out. However, opting for housing finance can make your job a lot easier. Buying a new property can seem like a tedious task to a first-time buyer in the real estate market. ![]()
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