Friday 31 October 2008

Buying home gets tougher

Get ready to pay as much as 40% of the house price upfront if you are planning to buy one on a bank loan. Banks have started increasing the margin money, or down payment, required for taking a home loan after the stress in the real estate market.

The aim is to ensure that even if prices drop sharply, the remaining value of the house is enough to cover the loan, should the borrower default.

Source: EconomicTimes

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