Search This Blog

03 September 2011

How to Use Shares for Home Loans

Share market is as usual booming and many people have invested in shares. The fluctuating market is an important aspect to consider when you wish to use your shares as an asset to withdraw loan amounts.
Be it personal loan or home loan shares have come up as an important mortgage asset to draw loans. Since personal loans are of lesser amount as compared to home loans the borrower will have to club amounts to get home loans on shares. Personal loans are also available easily but at a higher rate of interest as compared to any other loans.
The lending company will offer you loans on your shares depending upon their market value and also the risk factor involved. If you have high paying shares that is shares of established and rising companies you may get a larger amount of loan. When you wish to use your shares for the maximum benefit try to firsts assess their market value. When you find out their total money value or what you may get after selling them you can understand how much any lending company will offer you as loan. Here you know that the loan amount will be lesser or sometimes a certain percentage more than the total value of your shares.
If you have invested wisely in shares you will have high paying sharers and any company will be willing to offer you loan on this.
You can also consult a good share broker or agent to assess the selling value of your shares and if they are readily encashable. By this you will be able the come up with a value you can take up as loan. Always go in for a smaller loan amount as you will have to pay back this amount with interest. Also consider selling some shares if you can get immediate amounts if the calculated interest rate for home loans is very high. Consider a good financial planner or sit with all your records of financial investments and consider cutting out some or selling some low paying investments.
Shares are a good investment but they depend upon market trends and fluctuations. So the reliability is limited and any housing finance company will consider the liquidity of these before offering loan on this. But tried and tested shares have been and will continue to be a source of income and also an important asset to get mortgage loans.

No comments:

Post a Comment

Comment Like Share your views and experiences on Home Loans!