Tips for making down payment for your Home

A home is your haven to relax! A reflection of your personality and a symbol of social status and accomplishment. Being one of the biggest decisions in one’s life, you’ve to tread carefully. It involves a huge amount and needs meticulous planning.

Earlier buying a home was done by those in their middle age after saving up for years over their working life and that too after providing for children’s education, marriage etc. But today, people in their 30’s and even late 20’s want their own home early. You can buy a home early in your life by taking a home loan. But you need to pay a down payment (a minimum of 10%) before you go for a loan. Any delay in down payment means delay in purchasing your villa or flat. As property prices are rising day by day, the delay gets even costlier.

Here’re some tips for making down payment for your Home from Vishraam Builders, the most eco friendly builders of villas & flats in Thrissur.

Build a fund out of your savings

Try accumulating funds for your down payment from your savings. Start to save early in life and build a corpus fund. In the initial years of your career, you may consider investing in high-return investments like equity then you can transfer the funds to safer investments like fixed deposits. Making a budget & monitoring your monthly spends can pay off in the future.

Consider a proportionate release loan

For new construction projects promoted by reputed developers like Vishraam Builders, select lenders have an option which lets you make your down payment in small portions over time rather than one large lump sum. As the construction can take years to complete, you may make your down payment periodically reducing your burden.

Loan against LIC or PF

Taking loans against your life insurance policies or provident fund can be taken into consideration as a flat or villa is a long-term asset. You may repay this loan over time with your savings.

Borrow from family and friends

This can be done as a last resort, but it could be a sensitive issue.

Down payment for your home is indispensable. You may opt for a small or large down payment for your flat or villa as per your affordability. Here are the pros and cons of making a large down payment:


  • You own a larger equity in the property
  • Lesser dependence on borrowed funds.
  • Lower loan amount and lesser interest rate.
  • Quicker Loan approval
  • Cost savings


  • Lower liquidity as funds get locked up for long term
  • Lower tax benefits
  • Lesser money for the initial expenses like furniture and consumer durables, repairs and renovation, etc.

To know more on buying flats or villas in Thrissur, get in touch with us at Vishraam Builders, who ensure on-time delivery of residential and commercial buildings to achieve total customer satisfaction.