Express Money: Ask Us

—Rupali Mishra, Mumbai

The system of down payment exists as a factor that indicates the borrower's credit worthiness. The amount of real investment a borrower has in their purchase and their commitment to continue to make payments regularly are linked to this.

It acts as a sort of insurance for lenders, since borrowers know that if they default on their loan; they will not only lose the property but their down payment as well. It ensures that the buyer (borrower) has some stake in maintaining the property and it also means that the banks are protected from fall in interest rates since the amount that they lend is lower than the market value of the house. Therefore, if there is a fall, they can still recover the losses.

What are the key factors I need to be aware of when I choose a savings bank account?

—Varun Bist, Delhi

One of the first criteria to check would be to check the monthly balance requirement and other factors include debit card charges, cheque book facilities and charges, effectiveness of the online banking system, sweep facility and other interesting offers provided for an account holder.

I am planning to buy a house but the payment needs to be made at the total built up area. However, the actual area seems

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