It's a wise move to upgrade to a bigger home. You can use the additional rooms for your growing family, as a workspace, kids' study, guest room and more. But you need not sell your current home to buy a new one. Instead, consider planning your finances.
Know the Actual Cost of Buying a Home
When you wish to buy a house, consider the property value along with other expenses:
Stamp duty and registration charges
Brokerage (if applicable)
Down payment for the property
Title investigation and valuation charges, (if you take a Home Loan).
Know the Expenses incurred after a Property Purchase
There are certain expenses that you would incur post buying the property. These include:
Paint, furnishing and décor
Home insurance
Maintenance charges (the bigger the space, the higher the cost)
Utilities.
Set a Budget
Whether you are upgrading to a 2BHK or a 5+BHK, it is best not to touch your savings to finance the property value. Let a home loan take care of that. Just ensure that your monthly income (including any passive income source) is enough to fund the loan EMIs. Your savings can cater to expenses incurred during and post purchase.
Apply for a Home Loan
Finally, it's time to apply for a Home Loan and enjoy multiple benefits like:
Attractive interest rates with low EMIs
Minimal documentation
Online application process
Use an online Home Loan Calculator to choose the right loan amount and tenure. Request your bank to set an Auto-debit facility on a specific date to regularise your EMI payments. For more insight into upgrading your house or getting a home loan, read other ICICI Bank blog posts.
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