Ultimate Guide to Real Estate Financing

Real estate can be a lucrative option for investment if only you know how. In India people generally have a very conventional approach towards investment and would rather invest in stocks, mutual funds, gold, and such. The benefit of investing in real estate are many and it a popular strategy among investors to grow wealth. For beginners, however, it can be quite a challenge and for those planning to get into real estate it is important that they gather all the know how before making a purchase. You can get the details about real estate loan from any home loan advisory service in India who guide you with the process for a fee.

Here is an ultimate guide to real estate financing that will help you make wise decisions that will set you on the path to attaining financial freedom. Before seeking real estate loan advisory services, it is best to educate yourself and keep yourself abreast of what’s happening in the market.

Real estate financing comes with several financial benefits such as cash flow, tax benefits and appreciation of the property. Real estate loan advisors will recommend a strategic approach to help you deal with real estate investments.

Let’s start by understanding the significance of real estate financing

  1. The real estate business is growing at a fast rate and the business is almost doubling. Increase in profits can be seen every 2.5 years,
  2. The RERA act and the necessity of having an Aadhaar card has ensured that the business of real estate is streamlined to a great extent. This would ensure that business is carried out in a more organized manner encouraging more organized finance companies into the market.
  3. The more a country develops the lesser would be the interest rates. Hence now is a good time to make investments in real estates where the loan offers are of a greater profitability.
  4. In home finance companies the net NPA are higher in the banking sector as compared to home finance companies.

Investing in a property is an expensive proposition. There are many ways one could buy real estate such as availing bank loans and through Real Estate Investment Trusts. In addition, one can also look at sources such as Commercial banks, Saving and Loan Associations, Mutual Savings Banks, and Life Insurance Banks. Investment options such as Mortgage Banks, Pension Funds can also be explored with the help of a home loan advisory service.

Let’s explore some of the options available in India for real estate financing. Most real estate loan advisory firms would recommend that you avail one of these while investing.

  1. Bank Loans

Most people in India prefer the conservative approach such as availing a bank loan while buying a property. Banks provide a loan which is approximately 65 to 90% of the total loan amount and one must repay the same in EMIs. You must have a certain amount of the total property value to make as a down payment.

Most real estate advisors recommend that one go in for a conventional bank loan is because the tenure of repayment is 20 to 25 years. While you are paying off the EMI the value of the property also appreciates. A good home loan advisory service will help you with a bank that has a minimal processing fee and charges a low interest as well.

  1. Mortgage Loans

Applying for a mortgage is another way investors can buy a property. The mortgage obtained can be used to buy the property. In case the borrower defaults on the loan the mortgage will provide security to the bank. Real estate loan advisory firm will guide you on the different types of mortgages available in the market and you can make an educated choice.

  1. Real Estate Investment Trusts

If you are looking to invest in some real big time and income producing properties that investing in REITs is a great idea. REITs work very much like mutual funds and are listed on the stock exchange and can be traded. The advantage of REITs is that it gives you the option of investing in Grade A properties without having to buy the same.

  1. Hard Money Loans

If your credit score is not good enough real estate loan advisors will advise that you go in for hard money loans. These loans are provided by private lenders and generally for a short period of time. The advantage of such loans is that they are given out basis the value of your property. So, for those people looking to secure financing on a long term but require emergency cash these loans are helpful. However, check the credentials of the lender as it’s important to play safe while dealing with private lenders.

In addition to the options mentioned above one can avail capital through finance companies pension funds and credit unions.


In conclusion, it is recommended that one avail the services of real estate loan advisors when looking to buy a property as they would provide you an easy access to their knowledge base and help you take informed decisions while investing in a property. The stress of securing funds at the best possible rates is minimized and home loan advisory services assure you the best services at a minimal cost.

Buying your dream property or simply investing in a property to earn handsome returns is just a few steps away!