how-to-buy-down-paymentIf you have been filing away the plan to purchase your dream home for ‘later’ or when you are ‘more settled’, stop and reconsider right now.

The real estate scenario today is indeed a buyer’s market and you would gain tremendously from investing in it, particularly if you’re looking to buy your own home.

Even if you feel you need to have saved money for several years before you can even consider buying a home, we think the right time is now. What’s more, there are several housing loans that make it easier for you to go down this path, with some careful planning and thinking.

1409098But…what about down payment?

Well, yes, you would have to shell out money for down payment because the housing loan will not cover the entire cost of your home.

But before you balk at the huge amount of money you would need to funnel into this, let us quickly assure you that making the down payment too has become relatively easier today.

Firstly, the percentage of initial down payment has come down to 10% and even as low as 5% in some cases.

Yes, you read that right! Today, prospective owners can buy their dream home by paying as little as 5% of the cost of the home as down payment.

But do you still feel that arranging for even that much is beyond your means? Do you think that you just don’t have enough money to get into this right now?

Read on to discover how you can arrange for down payment and lock down your dream home right away.

1. Ask your employer for a loan

Most employers offer loans to employees at low interest rates. It would be a great idea to check at your workplace if this is available because it would allow you to take that step forward towards your goals, while still maintaining your self respect.

Often, the paperwork and documentation for such a loan is straightforward and simple, making it an easy process.

12689342. Availing finance against securities

Many people have financial assets such as bonds, shares, securities and insurance policies. But did you know that you can avail for loans against these?

Most banks are willing to extend loans against bonds and shares which means you don’t even have to sell them. Your securities remain as part of your assets.  

3. Liquidate your assets

If you’re unable to secure a loan against your assets such as gold, shares or mutual funds, or if the loan is not enough to cover your down payment, the best option would be to sell them.

Sure these are your plans for a rainy day but owning a home should definitely take bigger priority over investments right?

4. Your EPF comes in handy

The Employee Provident Fund is most often relegated as a retirement option and anyway you cannot withdraw it while you’re still employed.

However, if you have an EPF account for the past five years, you can take a loan from that account to make your down payment. The best part about this is that it’s your own money that is helping you out.

5. Turn to family for help

1244392As an absolute last resort, you might want to turn to your family – parents, in laws or relatives for financial help.

Traditionally, elders consider it their duty to help the younger generation in setting up their homes.

So, most often, relatives will pitch an amount towards your down payment willingly too.

Although this might be an option where you cannot be self-reliant, sometimes you might have no other choice.

Key Takeaway

Arranging for down payment today is not that much of a steep climb as it used to be, even a few years ago.

Apart from a lower down payment in the first place, there are certainly many ways in which you can arrange for it, if you only open your eyes and look in the right places.

Don’t let the fear of not having enough money for down payment deter you from your dream of owning your own home. After all, the right opportunities don’t come knocking on your door every single day.

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