Today, the decision to buy a home is not a very difficult one due to the easily available homes in the market. But the decision to wisely choose the process of how you make a payment to the builder is what makes all the difference. Earlier, the customers used to pay the developer as per the stage of construction. Although this is still available, it adds a burden on the customer who has an existing EMI or a loan. To get rid of this burden, a better solution is introduced – subvention. Since there are two types – bank & builder, let’s understand both of them in detail to get a fair idea of which is a better option and why.
- Bank Subvention – Here, there are three parties involved – the bank, the developer and the buyer. In this type, the buyer makes a small down payment. And while the project is under construction, the bank disburses amounts of loans in slabs to the builder, every time a construction milestone is completed. This type of loan method is suitable for people who are living on rent as they don’t have to bear the burden of both, the EMIs and the rent while the project under construction. When the bank is disbursing money to the builder in advance, the bank charges a certain percentage of interest to the developer and this is passed on to the customer through the cost of the flat. This increases the cost of the flat.
- Builder Subvention – This is the second type of subvention where the two main parties who get involved are – the developer and the buyer. This is particularly helpful in situations where the customer who wants to sell their current house for a price and use that income to buy a new house. Differences in cost can be paid by own funds of the buyer or by taking a small home loan. The builder bears all the costs to complete the construction. The developer will receive money only after completion, which acts as the driving force for him to complete the project on or before time. The advantage of the builder subvention is that the bank doesn’t get involved and thus no interest is charged.This benefit is passed on to the customer in the way of relatively lower flat rate.
Courtyard Thane by Narang Realty and The Wadhwa Group is currently offering Builder subvention for a limited period and is available on 2BHK and 3BHK apartments. Pay 9% down payment and rest at possession. Here’s your chance to make the most of it and get ready to design your dream home.
So, choose smart. Buy smart. Be risk-free. Be wise. Call us now to get more details on this process and then get ready to move in to a new lifestyle. Or shall we say, a new life?