Home Loan: Hidden Costs: Overview

Every loan has some extra costs attached to it. And for reasons best known to lenders most of these are hidden or coded. Get an approximate of the extra charges you may have to pay for your home loan. Here's a list of a few such charges.
  • Processing or administrative fees of any nature.
  • Commitment fees (rarely charged these days).
  • Legal fees payable to the lender or to the legal consultants of the lender.
  • Stamp duty on creation of mortgage
  • Prepayment charges
In short, make sure you read your sale agreement carefully!

Home Loan: Hidden Costs: Basics

There are other charges in a home loan.
Some common problems faced by home loan customers along with possible ways to avoid them.
  • Balance transfer on home loans; Weigh the option thoroughly!
Read all about the balance transfer option on home loans.
  • Should I prepay if I am half way through my loan tenure?
Find out how home loan prepayment will be of help even if you have not received the benefit of lower home loan rates.
  • Should I switch my loan?
A simple calculator that allows you to enter your present loan numbers to give you a straight Yes/No answer to the question Should I switch my loan? 

Read More >

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A maximum of 5 providers will compete to give you the best rates (May 2012)

 

 

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Preferred Banks
  •  Any 5
  •  SBI
  •  ICICI BANK
  •  HDFC
  •  AXIS BANK
  •  BANK OF INDIA
  •  STAN CHART
  •  KOTAK BANK
  •  FIRST BLUE
  •  INDIABULLS
  •  HSBC
  •  CITIBANK

 

 

 

 

 

 

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Benefits of Applying Online


When Banks Compete, you win.


Apply for a Home Loan at ApnaPaisa and we will match your requirements with the best offers from our network of over 400 service providers. We will get a maximum of five providers to compete for your business. WHEN BANKS COMPETE YOU WIN. You can then decide which home loan is best for you based on:


  • Lowest Interest Rate
  • Lowest EMI
  • No Pre-payment charges
  • Lowest Processing Fees
  • Maximum Eligible Loan Amount
  • Mandatory Documents Required
  • Lowest Processing Fees

Or any other factor that is important to you.

Negotiating Tips

1) If you have a good credit record and your income is sufficient to justify the loan you can negotiate on interest rates. You can also try and get Processing fees or legal or valuation fees reduced or completely waived.


2) If you go for a floating rate loan then pre-payment charges are not payable.


3) When interest rates are high and are expected to go down you should go in for a floating rate loan as it makes no sense to lock into high fixed rates or the so called Dual rate loans where rates remain fixed for a couple of years before shifting to regular floating rate loans. Please review this decision at least once every 6 months


4) Take term insurance and critical illness and accidental disability policy for the full loan amount to make sure you or your loved ones don't have to worry about loan repayment should you die or are disabled due to a critical illness or accident. You cannot be forced to buy this policy from the insurance company chosen by the lender - you should choose your own insurer.