Sri Lanka Luxury Property – Real Estate Loans.
Real estate loans: Understanding the concept of a loan
A real estate loan is what most people use in order to to purchase their home. Real estate loans makes an unaffordable house affordable to people who otherwise could not afford to purchase a house. Many investors also take advantage of a real estate loan to buy investment property. There are many houses for sale in Sri Lanka, but first you must clearly understand that taking out a real estate loan is going to cost you money via interest rates charged, it’s certainly not free.
A real estate loan can also be referred to as a mortgage and is the funds that you borrow from a financial institution i.e. a bank or mortgage lender, to either buy luxury houses for sale in Sri Lanka or luxury apartments in Sri Lanka. Generally, the real estate loan will cover part of the purchase price, but you will still have to place down a deposit as a down payment.
The actual amount of the down payment will depend on various factors that are demanded by each individual financial institution. Some may request you take our real estate insurance, which helps to lower the percentage rate these lenders may charge you. The amount you borrow will need to be paid back to the lender over a period of time along with a predetermined interest rate that they will charge you.
Market conditions and the term of your loan will dictate how much interest you will need to pay over the life of the loan. Monthly instalments will be required to be paid to the mortgage lender which will compose of both the principal portion of the loan plus the interest you will be charged.
There are 2 main types of real estate loans you can get. One is fixed interest loan, where the interest rate does not vary over the life of the loan. The other is where you have a variable rate, meaning that this rate can go up or down depending on market conditions.
On top of the interest rate you will be charged. There are also other costs associated with real estate loans in order to buy property in Sri Lanka e.g. closing costs, attorney fees, stamp duty, other taxes and inspection costs. Be aware also that even the best homes for sale in Sri Lanka or even those luxury houses for sale in Colombo will have work that needs to be done, so do allow for fixes or small renovations that might need doing.
Always have your real estate loan sorted with your financial institution before looking for those best luxury homes in Sri Lanka or that top luxury beach villas in Sri Lanka, as when you find the one you want, you need to be ready to pounce and buy. Sometimes it could be the best property for sale in Sri Lanka or the best villas for sale in Sri Lanka come on the market for sale, however if you are not ready you could miss out. Let us help you buy a luxury villa in Sri Lanka today. Contact us Now.