Are you in need of some extra finance? Maybe you want to apply for a second loan? Don’t do that! A top-up mortgage often works better than a new loan. It gives you access to the equity you have built up in the property. You can of course apply for another loan, like a personal loan. However, the terms are more costly and the application process is more time-consuming.
You don’t need as much documentation for a top-up loan as you would for a new loan. The lender or bank will already have all your information from your existing home loan.
Home loan top-ups are a simple way to access additional funds for various purposes. You can top up your current home loan for a maximum of 70% of the value of the property.
For instance, if you have borrowed Rs. 75 lakhs from your lender for 10 years and need another loan within 5 years, you can top-up your existing home loan to finance the refurbishment expenses.
A top-up loan can also be added to your housing loan application with a balance transfer housing loan. HomeLoans4U is the most trusted brand that offers you the lowest home loan interest rate. Housing loan top-ups work like a personal loan, you can finance any expense with it.
Lenders may limit the loan amount that they sanction for top-up loans. Some lenders may only offer loans for certain types of home financing. Therefore, make sure your lender offers a loan top-up that meets your financial requirements or you will have to look for another lender.
Top-up loans for end-use, such as home refurbishment or construction, may be subject to tax deductions.
The top-up loan prepayment doesn’t come with any penalty fees.
The loan tenure can vary from lender to lender, ask your lender about the loan tenure.
The interest rate on top-up loans may be slightly more than the interest rate on the home loan, again, confirm with your lender before applying.
Low-interest rates: Top-up home loans usually come with a lower interest rate than a personal loan or credit card. This is because they are backed by the property, making them a more affordable option for meeting different financial requirements.
Diverse purposes: There are no limits on how you can utilise the loan amount. You can use it for home improvements, education, wedding costs, medical expenses, or even to consolidate your debt.
Flexible repayment options: You can select the tenure that best suits your needs. You can pay the loan back in equal monthly instalments or by the terms and conditions you have entered into with your lender.
Tax benefits: In India, interest on a top-up home loan is subject to tax deductions under section 24(b). This provides additional tax benefits to the borrower.
Now that you have a better understanding of how top-up loans work on housing loans and some important factors to consider, it’s time to start applying for top-up loans.
If you’re looking for an affordable loan with flexible repayments and an affordable interest rate, then you can’t go wrong with a loan from HomeLoans4U.
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