Buying Flats

7 Mortgage Myths to Know Before Buying Flats in Sarjapur

While looking to buy Buying Flats in Bangalore, Sarjapur has become a popular choice for all. The reason is simple- residential apartments in Sarjapur Road is very well connected with all IT hubs like Outer Ring Road, Marathahalli, Electronic City, Koramangala, and Whitefield. All these IT sectors are within 15-20 Kilometers range of Sarjapur. The transportation facilities provided in this area are also really convenient.

Even though there are many pockets in and around Bangalore where exceptionally beautiful and stunning residential complexes are getting built, Sarjapur attracts a maximum number of buyers because of its prime location and connectivity to many IT hubs of the city. Many renowned and not-so renowned builders have built huge gated communities around that area, provide a range of modern amenities that will attract any individual looking to buy a decent Buying Flats in Bangalore. Some of these facilities are:

  • Swimming pool
  • Coffee Lounge
  • Jogging Track
  • Maintenance Office
  • Central Park
  • Volley Ball Ground
  • Tennis Court
  • Indoor Sports Court
  • Outdoor Party Hall with a Multipurpose Hall

Multiple facilities available with buying residential apartments in Sarjapur like; best of hospitals, schools, offices are in its vicinity; many international schools are also located in and around the Sarjapur Road area, which is making it one of the most sought-after places by people. Many NRIs are investing in this area, thinking it to be a good business investment for now (for rent purpose) and future when they return and settle for good.

So, if you too have been thinking to buy a cozy 2/3/4 Bhkapartment, Sarjapur is a nice area you can look forward to. You would receive a good amount of loan (almost 80%) from any reputed bank if your CIBIL scores are good and you are working in a good company with a decent pay package. However, many people delay or don’t opt into buying an apartment because of some myths that float about in the market about mortgage loans. You too need to be aware of the most predominating myths that lie abound mortgaging, 7 of them are:

Myth #1: Annual percentage rate (APR) and interest rates are one and the same

Buying Flats

While Buying Flats any property, you carefully need to compare the interest rate. Even 1 percent of less interest can save you some lakhs of rupees over your 20 to 30 years of loan payment period. However, more vital is your APR which gives you a detailed cost structure of your loans; like broker rates and the closing costs.

Myth #2: Owning one’s own property is better than staying in the rented facility Buying Flats

Homeowners do have a lot of headaches to take care of like- cost of maintenance, property taxes, EMIs for a home loan, etc. However, those living on rent also have a lot of tensions they need to face; like huge tax deductions, lacking a good investment or asset, etc. Millennials are of strong feeling that living on rent is a far better option today than Buying Flats one as it helps them stay mobile.

Myth #3- Huge savings on taxes

Huge savings on taxes money

If you are paying a mortgage loan, you are eligible for a good amount of tax deductions annually. By Indian standards, one can have up to two hundred thousand rupees of tax deductions in a year if you take property loan. 2.5 lakhs is a good saving if you are in a mid-cap salary bracket, however, it really does not pay off in case of a high-end salary bracket structure.

Myth #4- Bank wouldn’t give more loan than a stipulated amount

If you thought banks don’t pay more than a certain amount, you are mistaken. Banks can lend you a lot more than your existing loan amount provided you are able to pay it off. Depending on your salary structure, any reputed bank is ready to provide 100% of your salary package, which you need to pay off over a certain period of time. All you need to do is channelize your existing expense structure so that you are able to easily pay off your household loans easily.

Myth #5- You could relax once you’re pre-approved


Once bank gives you a pre-approval may mean your Buying Flats process has got simplified. However, it doesn’t mean you’ve been on the clearance path.

Myth #6- 20 percent down payment will be required

There’s been a rule for a long time now that you have to make 20% down payment, while your bank will provide rest of 80%. However, many financial heads are challenging that. They argue that the current lifestyle expenses do not leave much room for people to be able to save 20% of a huge sum, usually required to buy a home. Hence, this rule needs to be changed with immediate effect.

Myth #7- Completing the mortgage loans is always better

Any mortgage is much lower and helps you to use your money well. For instance, you were to take a home loan of 80 lakhs, you would be paying some 80,000 every month for the next 10 years. so, you could not just save on your money, you are actually paying a small amount.

Leave a Reply