Gatwala Commercial Hub , Faisalabad is Punjab’s biggest and Pakistan’s second largest mixed use, real estate project. It has a covered area of over 3.1 million sq. ft.

This mega project, designed and developed by Shah Nawaz Associates, is located, at the junction of Canal Expressway and Lahore Sheikhupura Road. The road in front of the GCH project, has an average traffic count of 30 vehicles per minute. become, the city’s next mega center for trade, commerce, industries as well as residential projects.



Things you need to know about home finance

It is impossible to contain joy when it is finally time to buy your own home. Still, it also becomes necessary to start managing each element of the process, such as choosing a home, analysing financing options, doing legal procedures, among others.

This blog provides ten tips that you should take into account when purchasing a new home to be successful in your purchase and avoid headaches in the future. If you need to know about things you need to know about home finance, keep on reading. 


Financing when buying a home

If you want to buy a house and you are clear that the best option is to finance, these are the steps you should follow:

  • Find the best banking offers online.
  • Run a mortgage simulation on their platforms
  • Study each case and choose the most viable one for you.


Nowadays, everything is usually done electronically, and the first steps, to save time and face-to-face procedures, are typically done online. Usually, banks, through their online platforms, already ask for the documentation, and once they receive it, it is analysed, and if it is positive, the process can begin.

In the case of being positive and approved, the next thing will be to do an appraisal and see what types of financing are the most appropriate for each case. At all times, the important thing is to carry out all the possible checks and comparisons and always keep the one that interests you the most.


Types of home finance:

If we talk about types of real estate financing, within the categorisation by interest rates, there are three different types: fixed, variable and mixed.


The fixed

Fixed-rate mortgage financing is characterised by being the one with an interest rate that will not vary during the entire mortgage term that has been agreed. When you have to pay the mortgage, you will always pay the same instalment without the possibility of variations.

It will not be volatile concerning the different economic situations that we may encounter in the future, but it tends to have somewhat high mortgage closing costs.

Even so, it is the most recommended option if you are sure that the house you are going to buy will be your home for many years.


The variable

The variable rate mortgage will pay one installment or another depending on the interest rate that is handled at that time. You will not have the clarity of always paying the same amount, and sometimes you will win, but sometimes you will lose since it will depend on how the economy is going and the variation in interest.


If we do not have insurance if the home that we are going to buy is going to be the house of your life and you are going to acquire it as an investment or after a few years, due to your circumstances or needs, you are going to have to sell it, the type that we advise will be the variable.


The mixed

As its name suggests, the mixed is a hybrid between the fixed and variable interest rates. In this way, the mortgage will have a variable interest that will have the Euribor as a reference, but in turn, a fixed interest will have been agreed, and it will be the combination of one and the other.


Things you need to know about home finance


Following are some of the things that you should know about home finances.


  • Choose the property:

The first step, and one of the most important, is to find out what houses or apartments are on the market. Also, identify which available properties meet your expectations, fit your lifestyle and needs, and if the price fits your budget.

Ensure that the construction company is recognised and endorsed, which guarantees that the family’s money will not be lost. Similarly, ensure that the investment remains in trust if it is a project under construction, and the risks of losing it are mitigated.

Also, determine what type of home is affordable, depending on its size, location, and other characteristics.


  • Verify that the property can be transferred:

Make sure that the property owners and their respective legal supports are registered. Also, collect the property history since all the registered properties are registered at the Public Instruments Registry Office.

Through this procedure, it is possible to know who the owners have been and at what moment of the property if it has been the subject of any process such as sale, mortgage, seizure or affectations for family assets. It is precisely through this process that you can make sure that the property does not have any limitation to be transferred.


  • Be very thorough with the deed process

The deed process is the instance in which the buyer meets all the requirements that are necessary to sign the property deeds. This implies that the person must obtain the documentation required by law and assume the corresponding payments for the delivery of the house.


  • Do you have enough for the down payment?

It is essential to have the necessary resources to pay the first installment since it is with this transaction that the acquisition of the property is ensured. Similarly, the higher the amount that covers that first installment of the home’s total value, the better; since this way, the debt will be less.

For this, you must project first, taking into account your economic capacity and your personal or household finances.


Be careful with how much you have to pay monthly

Along the same lines of the previous point, the experts advise that the amount to be allocated monthly to cover the mortgage credit should not exceed 30% of the income for the month, after subtracting other obligations and basic expenses such as food, education, health and transportation.


Review your financing options

Buyers have different alternatives to finance their new home: savings, mortgage credit, leasing, and access to other government subsidies.


Include other expenses in your budget

Keep in mind that buying a home implies assuming certain costs for procedures and paperwork: taxes, insurance, administration fee, decoration, removals, among others.

In addition, the notarial deed expenses correspond to 0.54% of the purchase value, an amount that must be paid equally between the seller and the new owner, so it must be included in your budget. It is also necessary to cancel the Withholding at Source to acquire real estate.


Find an ideal location for the family

You will often find properties with good attributes and at an attractive price, but far from the children’s school and work, for example. Therefore, one of the decisive criteria for choosing your home must be its location, this in accordance with the family’s needs: that it is close to schools, shopping centres, residential and commercial areas, hospitals, among others.


So, these are some things you need to know about home finance. Keep these tips and tricks in mind while buying your dream home. If you have any other questions and suggestions, leave a comment in the comments section below, and we will get back to you as soon as possible.


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