Home-owner Swati Babel recounts why shifting to a higher EMI helped her reduce the financial burden.
When Swati Babel and her husband decided to buy a house, she prepared herself for all the hurdles they would have to face during the process. The 31-year-old financial consultant set about doing her research and decided to put down roots in Roadpali, Navi Mumbai. Even though she knew a lot more than most people would about applying for a loan, Babel didn’t have it easy. “Getting the right valuation of the property was tough as the developer’s valuation of the property was not the same as the bank’s. Due of this, we had to generate the difference almost overnight,” she says.
After leveraging some of her gold and borrowing from family, she was able to make a down-payment of Rs 13 lakh for a 695 sq ft, ready-to-move-in 1-BHK flat.
To pay off the rest, Babel approached a Housing Finance Company and applied for a joint home loan.
When they started off, they had applied for a monthly EMI of Rs 29,058. “Last year, we increased the EMI to Rs 34,190 per month and got the tenure reduced from 17 to 10 years. We were able to do this as our income kept rising over the last five years,” says Babel.
Originally from Rajasthan, Babel has been working in Mumbai for a while before she and her husband decided to settle here. “We loved the city and the house was in our price range, with easy accessibility to the station (Kharghar). Over the years, transport services have improved and due to an upgrade in connectivity and social infrastructure, the area has seen a fillip,” she says, adding that the current valuation of her house has increased to Rs 70 lakh.