Top Reasons Why House Lease Financing is a Good Option
Leasing a home was once believed to be a less desirable option, but the perception is changing!
Today, due to the increasing prices of properties, it is nearly impossible for middle-class people to afford a home. However, house lease financing provides a possible way for people in making the long-awaited dream of owning a home come true.
If you are wondering why you should apply for a house lease finance loan, we have compiled a few reasons. Without further delay, let’s get started.
Minimum Lease Payments
When you opt for house lease financing, you don’t have to pay the amount of the loan in a lump sum. However, the entire amount is divided into minimum periodic lease payments that don’t seem a huge burden and you can repay it easily. The best thing about the lease schedule is that the minimum lease payment (MLP) covers both the share of interest as well as capital (principal amount).
Gradual Transfer of Ownership
The transfer of ownership in house lease financing is also very convenient. The title of the property is divided into a number of units and each unit is assigned a value. The lessee (the person who acquired the loan) has to purchase the units. Most financial institutions create a lease plan where the units are a part of the minimum lease payments and do not seem like an additional burden.
Flexible Lease Term
In Pakistan, the lease term can be extended up to 20 years, based on the income of the applicant. The more the lease term is, the lesser the lease payments are. However, it has an impact on the interest rate. Banks tend to charge more interest rates on larger lease terms as compared to shorter ones.
The Comfort of Living in Own Home
The best thing about house lease financing is that you can live in your home without having to change the home. You will feel like living in a rental home where the rent payments will start decreasing over time and eventually the home will become yours. Moreover, any sort of repair work will not go in vain because you will not have to vacate the home on the completion of the contract.
These reasons are enough to ascertain that house lease financing is a good option for people with low incomes. In Pakistan, there are a number of banks and other financial institutions offering house lease financing services. However, in order to apply for a house loan, you have to find houses for sale. There are a number of houses for sale listed at ilaan.com from all over Pakistan. The best thing about browsing the listings at ilaan.com is that you will get a realistic viewing experience – courtesy of HD pictures, videos, 2D floorplans, and property indices.
For increased convenience, you can also download the ilaan.com mobile app available for both Android and iOS. “We Find You Home” is not just our motto, but one of our objectives.