What Can You Do To Arrange The Down-Payment For Your House Purchase Faster?

No matter how hard you try, you end up spending more than you intend to. And, this slow speed of saving is going to ensure you are not able to buy a house of your own in the near future. Banks will lend you only 80 per cent money of the house's value, but you are finding it hard to save the remaining amount. Whatever money you have saved is not enough to make the down payment; though you are quite close, you are not close enough.

What can you do in a situation like this? You do not want to borrow money from your parents; asking for financial help from friends is out of question. You have to do it on your own.

Here are your options:

The Provident Fund money

If you recently changed your job, you could withdraw the provident fund or PF money to fund your house purchase. If your need to buy a house is more immediate than saving for the old age, the PF money could be of great help. Also, as the full and final settlement, your company is likely to issue a cheque worth at least two months of your salary, too. The PF savings and this money combined could work out to be a handsome amount.

Also read: Larger Down Payment Vs Buying an Affordable House, Know What Suits Your Pocket

The life insurance policy

You might be aware that you can take a loan against your life insurance policy. If you need only a small amount to finalise the house purchase, this option can be explored. While this might not be an ideal mode as it technically adds to your loan burden, taking a loan against your life insurance policy would hasten up the home-buying process.

The extra money

It may not have occurred to you but you spend most of your free time lazing around during the weekends. This is as unproductive as it gets. If you are really passionate about buying your house sooner, you would use this time to make money. Even if you are not a stock market investor and do not know how to multiply your money in a short period, your Saturdays and Sundays can be of great assistance if you want to make extra money. You used to be great at math. Why not try giving tutorials for a while. The money earnt notwithstanding, you will also find the teaching experience personally enriching. 

Also read: How To Pick The Best Home Loan Repayment Option