Budget has always been a constraint to taking the first step towards buying a home. Borrowers frequently take out personal loans, gold loans, or postpone home purchases entirely. Several limitations are imposed on a borrower’s eligibility that makes it a little difficult for the borrower to access the required amount of money. Mortgage guarantee-backed home loans serve as a boon to home buyers by providing the below benefits.
Mortgage guarantee-backed home loans help to improve the affordability of buying a home, provide early access to homeownership, and add flexibility to household financial planning.
Mortgage guarantee-backed home loan increases loan eligibility, helping borrowers secure a home loan of a higher amount through longer tenures and lower EMIs. As loan eligibility increases, home ownership possibilities expand with a minimum down payment.
This is especially beneficial for first-time borrowers with lower savings.
Mortgage Guarantee allow borrowers to avail themselves of loans from a wider cross-section of lending institutions. This opens the possibility of borrowing from those who offer lower interest rates.
Due to enhanced loan eligibility through MG-backed home loans, the dependence on expensive sources of funds like a personal loan or gold loan goes down significantly.