Purchasing a house is a very important decision that demands time and thorough thinking regarding such factors like the title of the house, quality, size, location, environment, and financial plan etc. For first time house buyers, they may face obstacles such as lack of knowledge regarding the risk of the property’s title, legal processes, or even simply in seeking the right financial institution that can cater to their available income.
“Purchasing a house means providing safety and happiness to your family, however the investment will also return a profit in the future which is why we encourage you not to wait until you have enough money to purchase a house, because you can seek financial assistance from a financial institution” said Mr. Heng Sakada, Head of Credit of First Finance Microfinance, which specialize in providing housing loans to low and middle-income families in Cambodia.
Mr. Heng Sakada continued, saying “In terms of seeking mortgage loan from financial institution, we should not focus on the interest rate as the sole factor to consider, especially for low and middle-income families, they should consider the following factors. Firstly, the repayment option: decide whether it is convenient and time saving to pay the installment or if you have to go to the office for every payment. Secondly, The fee: the fee is the expense which is covered by you, hence why you need to find out if there is an extra or hidden fee need to be charged when taking out a loan. Thirdly, The Loan Tenner: the length of the loan term can be an impact to a monthly installment plan due to the fact that the longer an installment is, the less you are stress to pay for the installment plan each month. Fourth, Partial Prepayment Condition: distinguish whether the conditions are satisfactory or complicated; how much is it possible to pay partially if a client wishes to do so? Fifth, Repayment Methodology: see to it that if clients have the choice of installment plans according to the cash flow and ability to make their payment, either client could pay a fixed principal payment or an equated monthly installment. Sixth, Favorable Conditions: does it have a grace period in the case that the client may face financial problems in a short time period? Can they change their payment schedule?” Mr. Sakada added that buying a house is typically a long term loan tenner that can last up to 15 years, so within this period a client may face some financial obstacles, hence this is why choosing an appropriate financial institution which provides the right conditions and the right skills in providing housing loans is a very important because you can then be certain that the institution can provide excellent consultation and the respective legal advice required.