Here’s How to Save up for Home Down Payment

It doesn’t matter how good or well-suited your rental flat is, it’s still a rental roof, something you can’t call your own. And with increasing rental rates, it is wise to live in your own house. Not only will it be your own space but also an investment for your generations to come.

A majority of people in India rely on home financing to fulfil their dream of buying a house. Since buying a property requires people to have some upfront cost for the down payment, you need to start saving for a home down payment now if you haven’t saved up anything already. However, saving for a down payment is a big challenge, especially for salaried individuals as their income and expenses are fixed. No need to worry though as you can follow the below-mentioned tips to understand how to save for a home down payment.

Develop a Habit for Savings

To turn your dream into reality, you need to develop a habit of savings. Following the 50-30-20 rule is a good place to start with if you want to accumulate saving for a home down payment. If you apply this rule strictly, it can do wonders for you. The rule is pretty simple to understand. Split your monthly income into 3 parts – 50 per cent to fulfil the needs that are absolutely necessary for you and your family, 30 per cent for wants and desires, and the remaining 20 per cent for savings and investments. 

Liquidate Assets

In case you already have some of your money parked in mutual funds, stocks, or fixed deposits, you can consider redeeming them to overcome your liquidity shortages.

Avail of a Loan Against Your Insurance Policies

You might not be aware but you can avail of a loan against your insurance policies. For the same, you can enquire from your insurance provider to ask if you qualify for a secured loan against your policies.

Take Help of Family and Friends

Do not hesitate to take the help of family and friends. Not only is it convenient but also saves you from the burden of paying interest.

So, these are some of the ways to accumulate saving for the down payment of your new home’s purchase.