Are you a Married Couple Looking to buy a new home to start your new life?

Satish and Geeta Mishra wanted to cross one task off their list when they got married – buy a home. This is their story.

For newlyweds Satish and Geeta Mishra*, the thrill of getting married had largely to do with a decision they had taken just before they tied the knot. “Both of us are army kids, and we travelled a lot as children. So both of us yearned for a permanent residential address, from which we would never have to move. One day Geeta told me that her dearest wish was to own a house. I told her I had the same dream,” Satish grins.

But his income as a marketing executive would not be sufficient to get a home loan. “A common friend suggested that we could take a joint home loan,” Geeta remembers. “We went to a financial institution the next day to get more information.”

Over there, they were explained about home loans by Manish Patankar, an executive in charge of loan disbursals. “Since your income is not enough to buy the home of your choice, you can easily opt for a joint loan,” he advised Satish.

“But can we get a joint home loan?” Geeta asked.

“Yes you can, because joint loans are given to married couples, or parents and children, or brothers. You can be a co-owner and also co-borrower of the loan,”  Manish explained to her.

Manish then scrutinised their income statements and announced that they were eligible for a home loan. “But first, have you selected a suitable property?”

“We loved a house in South Mumbai…” Satish began.

“See, given your incomes and eligibility, I feel that it would be too expensive for you. You can certainly get a loan, but the EMI will be large. You also have to arrange for the upfront money, because the loan will not cover more than 80% of the house value,” Manish explained. “Have you calculated your monthly budget, since you are newly married?”

“Yes, I think we should look at other properties,” Geeta mused. “But what is the rate of interest we will be charged?”

“It depends on whether you take a fixed or floating rate of interest. Home loan rates in India are normally over 9% and can go up to 12%,” Manish explained.

Satish began to look worried. “It’s all so confusing, we’ve never done this before…” he trailed off.

Manish smiled, “Relax, the first home loan purchase is always a little challenging. I would advise you to first assess your finances, your monthly outgoings and how much EMI you can afford to pay. Next, you should select affordable properties and scrutinise the paperwork carefully. You can then come back to us with your loan request, at which point we will study the property, advise you on home loan rates and explain the paperwork.”

Satish and Geeta took his advice, and recently, they received a home loan and moved into their own home in Mumbai. “It is a dream come true for both of us,” they say in unison.