Everything You Need to Know about Home Extension Plan
Mar 15, 2018 Home Trading Steps
It is everyone’s dream to own a big and spacious house but not everyone can afford that. The rising cost of real estate makes it difficult for people to buy property that they dream of owning. With the help of home loans from banks and other financial institutes, it has become easier for people to take a step forward towards the house of their dream. Most of them settle with the one that suits their budget.
As one grows in life and profession, need for a bigger place become apparent. But buying another house and taking another loan for the same is not something everyone is comfortable with. Most people also do not want to get into the hassle of buying a new one and selling the current one. all the paperwork involved in doing the same is tiresome. The banks and financial institutes have come forward to help with the same. It is a general conception that banks only give out home loans to buy home loans. But the banks also give out loans to extend your home under the separate category called ‘home extension loan’.
There are certain things one needs to know about the home extension loans:
1.Eligibility:
Home extension loan can be taken by anyone provided they have a decent credit score. If the individual is already servicing a home loan then the home extension loan can be given as a part of extended service provided by the bank. The good thing is that the documentation process takes lesser time than the one taken while applying for home loan.
2.Tenure:
As other loans, the tenure of home extension loans also depends on the eligibility, age and financial capability of the applicant. The tenure provided is generally 20 years which is enough time for one to not worry about repaying it in hurry.
3. Interest rates:
The interest rates on the home extension loans are more or less similar to the home loan interest rates. But then again, the age, source of income, nature of income and other factors determine the interest rates of home extension loans.
If your family has extended or you need to extend your home and make some changes but do not have enough financial resources to do the same then worry not, the home extension loan is there to make things easier for you. One does have to ease of repaying it back till the home loan matures.
As one grows in life and profession, need for a bigger place become apparent. But buying another house and taking another loan for the same is not something everyone is comfortable with. Most people also do not want to get into the hassle of buying a new one and selling the current one. all the paperwork involved in doing the same is tiresome. The banks and financial institutes have come forward to help with the same. It is a general conception that banks only give out home loans to buy home loans. But the banks also give out loans to extend your home under the separate category called ‘home extension loan’.
There are certain things one needs to know about the home extension loans:
1.Eligibility:
Home extension loan can be taken by anyone provided they have a decent credit score. If the individual is already servicing a home loan then the home extension loan can be given as a part of extended service provided by the bank. The good thing is that the documentation process takes lesser time than the one taken while applying for home loan.
2.Tenure:
As other loans, the tenure of home extension loans also depends on the eligibility, age and financial capability of the applicant. The tenure provided is generally 20 years which is enough time for one to not worry about repaying it in hurry.
3. Interest rates:
The interest rates on the home extension loans are more or less similar to the home loan interest rates. But then again, the age, source of income, nature of income and other factors determine the interest rates of home extension loans.
If your family has extended or you need to extend your home and make some changes but do not have enough financial resources to do the same then worry not, the home extension loan is there to make things easier for you. One does have to ease of repaying it back till the home loan matures.
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