{"id":569,"date":"2021-05-04T09:06:13","date_gmt":"2021-05-04T09:06:13","guid":{"rendered":"https:\/\/www.loanfasttrack.com\/blog\/?p=569"},"modified":"2022-07-23T14:10:20","modified_gmt":"2022-07-23T14:10:20","slug":"how-big-must-be-your-down-payment-on-a-home-purchase","status":"publish","type":"post","link":"https:\/\/www.loanfasttrack.com\/blog\/blog\/mortgage-loan\/how-big-must-be-your-down-payment-on-a-home-purchase\/","title":{"rendered":"How Big Must Be Your Down Payment On A Home Purchase"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/cdn.dnaindia.com\/sites\/default\/files\/styles\/full\/public\/2019\/09\/10\/866590-homeloan-istock091019.jpg\" alt=\"How Big Must Be Your Down Payment On A Home Purchase\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is Down Payment?<\/strong><\/h2>\n\n\n\n<p>A down\npayment is your money contribution in purchasing a house. It is the percentage\nof the purchase price of the house which you do not finance. Also referred to\nas own contribution or OCR in the mortgage industry, down payment is your\nequity in the house without which the funding for your property is not\npossible. The amount of liquidity you need to put down as a down payment\ndepends largely on the purchase price of your home. <\/p>\n\n\n\n<p>The\nstandard percentage of down payments required as per the house value are:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>10% for the market value of\nthe property\/house below Rs.30 Lakhs.<\/li><li>20% for the market value of\nthe property\/house from Rs.30 Lakhs to Rs.75 Lakhs.<\/li><li>25% for the market value of\nthe property\/house above Rs.75 Lakhs.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How Big Must Be You Down Payment?<\/strong><\/h2>\n\n\n\n<p>The amount\nyou should put down as down payment while buying a home is a personal decision\nthat depends on what is the best for your finances. You may put down more in\naddition to the standard percentile of the down payment. The higher the down\npayments the more benefits you shall earn from the lenders of the <a href=\"https:\/\/www.loanfasttrack.com\/home-loan\/apply-online-now.html\"><strong>home loan<\/strong><\/a>. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Benefits Of Paying Higher Down\nPayment<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Higher down payments means\nyou apply for a lesser <a href=\"https:\/\/www.loanfasttrack.com\/home-loan.html\"><strong>home loan<\/strong><\/a> amount &amp; so you pay less\n<a href=\"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/what-is-home-loan-emi\/\"><strong>home loan EMIs<\/strong><\/a>.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Higher down payments means\nlesser home loan amount, which means lesser interest over the home loan amount.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>With higher down payments you\nare of lesser risks to the lenders i.e. Banks\/HFCs\/NBCs and hence you have\naccess to the lower home loan interest rates. An interest rate that is just one\nor two points lower can save you thousands and lakhs over the course of your\nloan tenure.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Higher down payment earns you\na chance for better negotiations on the home loan processing charges with the\nlenders. (<a href=\"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/must-know-all-costs-in-home-loan\/\"><strong>Learn the total costs involved in purchasing a home\nloan-Click<\/strong><\/a>)<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Current Home Loan Interest Rates Of\nThe Leading Banks<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>\n  <strong>Bank Name<\/strong>\n  <\/td><td>\n  <strong>Home Loan Rate Of Interest <\/strong>\n  <\/td><td>\n  <strong>Home Loan Processing Fees<\/strong>\n  <\/td><td>\n  <strong>Loan Tenure<\/strong>\n  <\/td><\/tr><tr><td>\n  <a href=\"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/why-choose-icici-bank-home-loans\/\"><strong>ICICI\n  Bank<\/strong><\/a>\n  <\/td><td>\n  6.80% p.a. onwards\n  <\/td><td>\n  0.30% of the loan amount + applicable GST\n  <\/td><td>\n  Up-to 30 years \n  <\/td><\/tr><tr><td>\n  <strong><em>Limited period offer with\n  ICICI Bank<\/em><\/strong>\n  <\/td><td>\n  <strong><em>Zero processing fees (PF) for\n  cases above Rs.1 crore. Applicable GST on the PF to be paid by the borrower.<\/em><\/strong>\n  <\/td><td>\n  <a href=\"https:\/\/www.loanfasttrack.com\/home-loan\/apply-online-now.html\"><strong>CLICK<\/strong><\/a>.\n  <\/td><\/tr><tr><td>\n  <a href=\"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/why-choose-hdfc-ltd-home-loan\/\"><strong>HDFC\n  Bank.<\/strong><\/a>\n  <\/td><td>\n  6.700% p.a. onwards\n  <\/td><td>\n  Up-to 0.50% &#8211; up-to 1.50% of the loan amount +\n  applicable GST\n  <\/td><td>\n  Up-to 30 years\n  <\/td><\/tr><tr><td>\n  <strong><em>Limited period offer with HDFC\n  Bank<\/em><\/strong>\n  <\/td><td>\n  <strong><em>Rs.5,900\/- + GST (For\n  Salaried)<\/em><\/strong>\n  <\/td><td>\n  <a href=\"https:\/\/www.loanfasttrack.com\/home-loan\/apply-online-now.html\"><strong>CLICK<\/strong><\/a>.\n  <\/td><\/tr><tr><td>\n  <a href=\"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/canara-bank-home-loan\/\"><strong>Canara\n  Bank<\/strong><\/a>\n  <\/td><td>\n  6.90% p.a. onwards.\n  <\/td><td>\n  Rs.10,000\/- + applicable GST\n  <\/td><td>\n  Up-to 30 years\n  <\/td><\/tr><tr><td>\n  <a href=\"https:\/\/www.loanfasttrack.com\/blog\/blog\/home-loan\/home-loan-comparison-chart-of-leading-banks\/\"><strong>Click\n  to get the complete chart<\/strong><\/a><strong><\/strong>\n  <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Since\nthe down payment is your equity in a home at the moment you buy it, you need to\nsave money for the down payment, if you have to buy a house. For some saving\nfor a down payment can take months, years or even decades. Savings is not an\neasy task. You must learn the art of saving money. You may consider these <a href=\"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/8-best-investment-plans-for-savings-a-smart-way-to-save-money\/\"><strong>8 best investment plans to save your money.<\/strong><\/a> <\/p>\n\n\n\n<p>To save\non the interest is the general tendency of all. Maximum times the purchaser of\nthe house try to his own contribution funds more and borrow less from the\nlenders so as to minimize the interest outgo. But before doing so, it is\nmandatory to weigh the prioritization of the tasks. Putting more down payment\nalso means having less money for renovations &amp; repairs, for interiors, for\npainting your walls and for buying new furniture. Putting more down payments\nmeans waiting longer to buy your home. Putting more down payment means you\nliquidate your savings and investments which means you have access to lesser or\nno savings in emergencies. So it is important to understand, if you have income\nconstraints it would be wise to postpone your home buying decision.<\/p>\n\n\n\n<p>Yet\nanother common mistake usually observed is you try to get an unsecured loan \/ <a href=\"https:\/\/www.loanfasttrack.com\/personal-loan\/apply-online-now.html\"><strong>personal loan<\/strong><\/a> whenever you fall short for the OCR\namount. Remember personal loans being unsecured in nature are highly priced in\ninterest rates &amp; have lock-in periods, thus putting conditions on the\npartial payments and foreclosure of the loans thereby attracting heavy closure\nfees. Moreover since the <a href=\"https:\/\/www.loanfasttrack.com\/personal-loan.html\"><strong>personal\nloans<\/strong><\/a> are obtained for a shorter duration the EMIs for such loans remains high\nand as such it eats your borrowing capacity when you go for a <a href=\"https:\/\/www.loanfasttrack.com\/home-loan.html\"><strong>home loan<\/strong><\/a>. Unaware of these facts can pause your\ndream to purchase a house of your own. Know your <a href=\"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/what-do-you-mean-by-loan-eligibility-in-home-loan\/\"><strong>home loan eligibility<\/strong><\/a> with Loanfasttrack\u2019s <a href=\"https:\/\/www.loanfasttrack.com\/emi-calculator.html\"><strong>home loan EMI calculator<\/strong><\/a>. <\/p>\n\n\n\n<p>By, <\/p>\n\n\n\n<p>Loanfasttrack<\/p>\n\n\n\n<p>Loanfasttrack\nis a Mumbai based loan provider company since 2015 offering loan services in\nMumbai on&#8211; <a href=\"https:\/\/www.loanfasttrack.com\/home-loan\/apply-online-now.html\"><strong>housing loan in\nMumbai<\/strong><\/a>, <a href=\"https:\/\/www.loanfasttrack.com\/mortgage-loan\/apply-online-now.html\"><strong>mortgage loan in\nMumbai<\/strong><\/a>, <a href=\"https:\/\/www.loanfasttrack.com\/personal-loan\/apply-online-now.html\"><strong>personal loan in\nMumbai<\/strong><\/a><a href=\"https:\/\/www.loanfasttrack.com\/personal-loan\/apply-online-now.html\">,<\/a><a href=\"https:\/\/www.loanfasttrack.com\/business-loan\/apply-online-now.html\"> <\/a><a href=\"https:\/\/www.loanfasttrack.com\/business-loan\/apply-online-now.html\"><strong>business Loan in\nMumbai<\/strong><\/a>, <a href=\"https:\/\/www.loanfasttrack.com\/business-loan.html\"><strong>unsecured business loans<\/strong><\/a>,<a href=\"https:\/\/www.loanfasttrack.com\/balance-transfers.html\"><strong>home loan transfe<\/strong><\/a><a href=\"https:\/\/www.loanfasttrack.com\/balance-transfers.html\"><strong>r<\/strong><\/a>, top-up loans and <a href=\"https:\/\/www.loanfasttrack.com\/balance-transfers.html\"><strong>loan transfers<\/strong><\/a>. Loanfasttrack is a direct\nsales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank,\nCiti Bank, Piramal Housing Finance, etc.<\/p>\n\n\n\n<p>Loanfasttrack\u2019s\nspecialized services include providing:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The<a href=\"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/best-banks-for-housing-loan-in-india\/\"> <\/a><a href=\"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/best-banks-for-housing-loan-in-india\/\"><strong>best bank for home\n<\/strong><\/a><a href=\"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/best-banks-for-housing-loan-in-india\/\"><strong>loan<\/strong><\/a><strong>.<\/strong><\/li><li><a href=\"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/best-banks-for-mortgage-loan-in-india\/\"><strong>Best Banks For Mortgage Loan In India<\/strong><\/a><strong><\/strong><\/li><li>Assured low interest rates for<a href=\"https:\/\/www.loanfasttrack.com\/mortgage-loan\/apply-online-now.html\"> <\/a><a href=\"https:\/\/www.loanfasttrack.com\/mortgage-loan\/apply-online-now.html\"><strong>loan against\nproperty in Mumbai<\/strong><\/a>.<\/li><li>Lowest<a href=\"https:\/\/www.loanfasttrack.com\/home-loan\/apply-online-now.html\"> <\/a><a href=\"https:\/\/www.loanfasttrack.com\/home-loan\/apply-online-now.html\"><strong>home loan rates in\nMumbai<\/strong><\/a><strong>.<\/strong><\/li><li><a href=\"https:\/\/www.loanfasttrack.com\/personal-loan\/apply-online-now.html\"><strong>Instant loan in\nMumbai<\/strong><\/a><strong>.<\/strong><\/li><li>Instant <a href=\"https:\/\/www.loanfasttrack.com\/personal-loan\/apply-online-now.html\"><strong>personal loan in Mumbai<\/strong><\/a> &amp;<a href=\"https:\/\/www.loanfasttrack.com\/business-loan\/apply-online-now.html\"> <\/a><a href=\"https:\/\/www.loanfasttrack.com\/business-loan\/apply-online-now.html\"><strong>business loan in\nMumbai<\/strong><\/a><\/li><li>Low cost<a href=\"https:\/\/www.loanfasttrack.com\/balance-transfers.html\"> <\/a><a href=\"https:\/\/www.loanfasttrack.com\/balance-transfers.html\"><strong>home loan balance\ntransfer<\/strong><\/a>.<\/li><\/ul>\n\n\n\n<p><strong>Contact Loanfasttrack<\/strong><strong>: <\/strong><\/p>\n\n\n\n<p><strong>Website<\/strong><strong> &#8211; <\/strong><a href=\"http:\/\/www.loanfasttrack.com\"><strong><em>www.loanfasttrack.com<\/em><\/strong><\/a><strong><\/strong><\/p>\n\n\n\n<p><strong>Email<\/strong><strong> &#8211; <\/strong><a href=\"mailto:info@loanfasttrack.com\"><strong><em>info@loanfasttrack.com<\/em><\/strong><\/a><strong><\/strong><\/p>\n\n\n\n<p><strong>Tel<\/strong><strong> &#8211; <em>9321020476<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is Down Payment? A down payment is your money contribution in purchasing a house. It is the percentage of the purchase price of the house which you do not finance. Also referred to as own contribution or OCR in the mortgage industry, down payment is your equity in the house without which the funding &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33,57,329,4],"tags":[1271,1275,1285,1286,1288,1290,1233,1269,1257,1251,1260,14,123,245,1264,179,182,1252,1248,1172,1232,1225,1283,1241,1258,1228,25,1276,1239,1299,1298,1277,1246,1278,1244,1243,1281,1287,1265,11,1247,1280,1226,1256,13,9,1224,12,1262,1219,1268,1237,1236,1308,1303,1307,1242,1289,1050,1293,1270,1267,1292,1282,1259,1297,1279,1304,1035,1033,1038,1040,1034,1266,1027,1261,1234,1238,1240,1235,1253,1295,1296,1202,1245,1249,1254,1250,1294,1284,1274,1273,1272,1231],"class_list":["post-569","post","type-post","status-publish","format-standard","hentry","category-finance","category-home-loan","category-lease-rental-discounting","category-mortgage-loan","tag-100-percent-home-loan-financing","tag-100-home-loan-financing","tag-30-lakh-home-loan-emi","tag-35-lakh-home-loan-emi","tag-all-bank-home-loan-emi-calculator","tag-apply-home-loan-online","tag-average-down-payment-on-a-house-for-first-time-buyer","tag-axis-bank-home-loan-maximum-tenure","tag-axis-bank-home-loan-processing-fee","tag-bank-of-baroda-home-loan-processing-fee","tag-bank-of-baroda-home-loan-processing-time","tag-best-bank-for-home-loan","tag-best-bank-for-home-loan-in-india","tag-best-bank-for-mortgage-loan-in-mumbai","tag-best-home-loan-tenure","tag-best-housing-loan-rates","tag-best-housing-loan-rates-in-mumbai","tag-bob-home-loan-processing-fee","tag-boi-home-loan-processing-fee","tag-compare-home-loan-emi","tag-down-payment-calculator-india","tag-emi-calculator-with-extra-payment","tag-grace-period-for-home-loan-emi","tag-hdfc-home-loan-emi-calculator","tag-hdfc-home-loan-processing-fee","tag-hdfc-loan-repayment-schedule","tag-home-loan-balance-transfer","tag-home-loan-calculator","tag-home-loan-down-payment-and-emi-calculator","tag-home-loan-down-payment-assistance-india","tag-home-loan-down-payment-calculator","tag-home-loan-downpayment","tag-home-loan-eligibility-calculator","tag-home-loan-eligibility-criteria","tag-home-loan-emi-calculator-icici-bank","tag-home-loan-emi-calculator-sbi","tag-home-loan-emi-default-charges","tag-home-loan-emi-per-lakh-for-10-years","tag-home-loan-emi-tenure-calculator","tag-home-loan-in-mumbai","tag-home-loan-interest-rate","tag-home-loan-joint-account","tag-home-loan-prepayment-calculator-reduce-tenure","tag-home-loan-processing-fee-comparison","tag-home-loan-rates-in-mumbai","tag-home-loan-transfer","tag-house-payment-schedule","tag-housing-loan-in-mumbai","tag-housing-loan-maximum-tenure","tag-housing-loan-repayment-schedule","tag-housing-loan-tenure","tag-how-much-down-payment-for-a-100k-house","tag-how-much-down-payment-for-home-in-india","tag-how-much-loan-can-i-get-on-1-lakh-salary","tag-how-much-loan-can-i-get-on-40000-salary","tag-how-much-loan-can-i-get-on-60000-salary","tag-how-to-arrange-down-payment-for-home-loan","tag-how-to-calculate-home-loan-emi","tag-how-to-calculate-ltv-in-home-loan","tag-how-to-clear-home-loan-faster","tag-how-to-get-full-loan-for-house","tag-how-to-reduce-home-loan-tenure-hdfc","tag-how-to-repay-home-loan-faster","tag-how-to-stop-home-loan-emi-if-the-possession","tag-icici-bank-home-loan-processing-fee","tag-is-down-payment-mandatory-for-home-loan","tag-joint-home-loan-eligibility","tag-loan-eligibility-calculator","tag-low-fixed-rate-home-loan","tag-lowest-home-loan-interest-rate","tag-lowest-home-loan-interest-rates-in-mumbai","tag-lowest-home-loan-rates-in-mumbai","tag-lowest-interest-rate-home-loan","tag-maximum-home-loan-tenure-india","tag-maximum-ltv-for-home-loan","tag-maximum-tenure-for-home-loan","tag-minimum-down-payment-for-home-loan","tag-minimum-down-payment-for-home-loan-hdfc","tag-minimum-down-payment-for-home-loan-in-india","tag-minimum-down-payment-for-home-loan-in-sbi","tag-processing-fee-for-home-loan-in-sbi","tag-sbi-down-payment-for-home-loan","tag-sbi-down-payment-for-home-loan-home-loan-down-payment-and-emi-calculator","tag-sbi-home-loan-10-down-payment","tag-sbi-home-loan-calculator-2022","tag-sbi-home-loan-processing-fee","tag-sbi-home-loan-tenure","tag-sbi-housing-loan-processing-fee","tag-what-is-bank-interest-on-50-lakhs","tag-what-will-happen-if-home-loan-emi-not-paid","tag-which-bank-gives-100-percent-home-loan-in-india","tag-which-bank-gives-90-percent-home-loan-in-india","tag-which-bank-gives-95-percent-home-loan","tag-zero-down-payment-home-loans-india"],"_links":{"self":[{"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/posts\/569","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-js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