Home is a major milestone that a person desires to achieve during his/her life. Home is not only a cemented structure but a library of your memories. It is the place where you can relax, forget all the frets of the world, spend time with your family and celebrate special occasions. All the memories continue to haul over generations and you will start having a special attachment with your home. However, getting a home is not that easy. It comes with a hefty a high price, which can’t be paid at once by most of us. Also, availing a home loan is not as cost-effective as it seems.
What if you can buy an older home and renovate it thereby? Buying an existing home will cost you considerably less than building one. You can even pay the price from your pocket without taking any home loan. But the older home can’t be kept as it is. Before you can start making memories in it, you need to give it a new or to say ‘your own’ touch, which is also called home renovation. Before applying for a home renovation loan, you must know about different types of loan.
How can you finance home renovation?
Renovation requires dealing with a plethora of things such as arranging contractors, getting an interior decorator, raw materials, etc. All these have their respective costs, which if put together, turns out to be a lump sumthing to do will be a considerable amount. The best way to finance these needs is by availing a home renovation loan, which is available with almost all lending institutions. Owing to flexible repayment tenure and affordable interest rates, home renovation loans are getting popular these days. Beside renovating an existing home, one can also avail of a home renovating loan to purchase an older home and then finance its renovation. enovation Loan
Benefits of a home renovation loan
There are multiple benefits of home renovation loans. They can really help you in changing to get a complete makeover of your home. Furthermore, they have exclusive financial benefits, which makes them cost-effective. Here is the listicle of the beneficial features of a home renovation loan.
Projects that qualify
- Exterior remodel
- Foundation repair
- Roof repair or replacement
- New appliances
No prepayment penalties
There are no prepayment charges on home renovation loans as Reserve Bank of India (RBI) forbid banks to impose prepayment penalties on this. this means that you can reduce the amortization tenure and also save ample bucks if you can pay a certain amount as prepayment.
The annual interest rate for home renovation loan ranges between 9.5 and 10.5%, which is much less than personal loans.
Home renovation loans usually require fewer formalities and minimal documentation, which enable the lenders to disburse the sanctioned amount as soon as possible. The disbursal usually takes not more than 5 days from the day of submission of all documents.
Who should avail of a home renovation loan?
A home renovation loan can be availed in a couple of situations.
- When your existing home needs to be revamped due to the age or if you want to reprofile its design as per your choice.
- If you are planning to buy an older home as it will cost less and then renovate to give it a fresh look.
Home renovation loans prove to be the best way to finance big renovations. They can be equally beneficial when it comes to buying a home. Hence, if you are looking out for cheaper ways to finance a home purchase, go get an older home at a low price and give it a completely new design by availing a home renovation loan.