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Charges other than interest cost associated with home loans
Posted on Oct 20, 2014
In August, lending institutions, such as State Bank of India (SBI) and Housing Development Finance Corp. Ltd, lowered home loan interest rates marginally for new borrowers. But that is not the only cost that you incur. With regards to a home loan, along with the interest cost there are few other charges as well. Processing charge This is paid along with the application form to avail a home loan. It is typically 0.25-0.50% of the loan amount. For instance, SBI charges 0.25% of the loan amount (minimum Rs.1,000 for loans up to Rs.25 lakh, Rs.6,500 for those between Rs.25 lakh and Rs.75 lakh, and Rs.10,000 if it is above Rs.75 lakh). Processing fee is generally non-refundable even if your loan application is rejected. It is charged for various processes such as assessing loan eligibility and evaluating the property value.

Commitment fee This is levied by the lending institution on a borrower for unused credit. In case of a construction-linked loan, the loan disbursal is linked to project completion stages. The borrower may need to pay a charge for accessing the loan in the future from the lender. For instance, for home loans or even loan against property, Kotak Mahindra Bank Ltd charges 2% as commitment fee on loan amount sanctioned less the amount disbursed. Prepayment penalty When a borrower pays the entire or a part of the outstanding loan before the due date, it is termed as prepayment. When you prepay, the lender losses out the opportunity to charge interest on this amount. So to cover this loss to some extent, the lender charges a penalty. It varies across lenders, and often from loan to loan. However, the Reserve Bank of India, on 5 June 2012, directed all banks not to charge foreclosure charges/prepayment penalty on home loans that are on floating interest rate basis. For fixed rate home loans, however, there is a

prepayment penalty charged at a flat rate, which is typically around 2% of the prepaid amount. For instance, Axis Bank Ltd and Punjab National Bank charge 2%.

Miscellaneous costs Other than these, there are various other fees and charges that you might have to pay. These include legal assistance of a lawyer for inspection of the original property paper at the sellers place, registration of the mortgage deed and so on. What should you do? While applying for a loan, ask the lender about the various fees. Sometimes several components are clubbed into one fee. Also, just like the interest rate, most of these charges are negotiable. You can ask the bank to waive some of the fees. Make sure that the bank is not agreeing to reduce one fee while raising another or lower the interest rate while raising the fees. Once you are satisfied with the terms you have negotiated, obtain a written offer letter from the lender and keep a copy.


Dewan Housing Finance Corporation Ltd offers Diwali special home loan fee rates in different slabs
Posted on Oct 20, 2014
NEW DELHI: Dewan Housing Finance Corporation Ltd (DHFL) has launched consumer friendly home loan fee structure in various brackets for salaried people ahead of Diwali.The company will offer loans up to Rs 30 lakh with Rs 5,000 fee added with document charges; loans between Rs 30-75 lakh at feee of Rs 10,000 (plus document charges) and for loans abo ...

Hyderabad v/s Secunderabad: Where to invest?
Posted on Oct 20, 2014
Are you mulling over the idea of investing in property either in Secunderabad or Hyderabad and are not able to choose one? Here is an insight:Buying a property or investing in one is a tough decision. This includes location of interest, scope of price appreciation, based on buyers requirements and reasons. Few buy properties in growing areas, whil ...

Bangalore Become the Most Favorite Property Investment Destination for NRIs
Posted on Oct 20, 2014
Bangalore : Now a day, the real estate market in the Bangalore city is propped up by investments from NRIs as it has turned into a standout amongst the most favorite investment destinations. Recent report by ASSOCHAM (Associated Chambers of Commerce and Industry in India) revealed that “Bangalore is in the foremost position as a favorite property ...

Home loan rates likely to soften
Posted on Oct 20, 2014
Property prices in real terms–after adjusting for inflation–are coming down, RBIs governor Raghuram Rajan said.“The value of real estate should increase in a growing economy , but the housing data suggests that with inflation rate at 7-8%, prices are coming down in real terms and becoming more affordable as wages are going up,“ Rajan said.Despite ...

Pick your home in just Rs 15 lakh
Posted on Oct 20, 2014
Do you have a limited budget to spend on your first home? Localities along the GST Road in Chennai offer options that can easily fit your bill!!As commercial activities have gained momentum along the Grand Southern Trunk (GST) Road, areas lying across this stretch have become an affordable housing hub for professionals employed nearby.“Nearly 3 mil ...

6 reasons why Andhraites keen to invest in Hyderabad
Posted on Oct 20, 2014
Six months back, investors from Andhra Pradesh were sceptical about putting their money in Hyderabad realty. The volatile political scenario, low buyer interest, the reasons were many. But, today, the scenario is different. Investors from Andhra Pradesh are keen on investing in properties in Hyderabad. Here is why -Well-equipped infrastructure and ...

Tips to Remember When Buying a Luxury Property
Posted on Oct 20, 2014
Bangalore : Owning a property which suits to your lifestyle will gives you a certain kind of high and is also engrossing a certain element of risk. As per the report, due to the depreciation of Rupee there is a growth in Luxury housing segment. The luxury housing is not only restricted for metropolitan cities or other big cities, there is a launch ...

Four reasons why Bhiwandi attracts end-users
Posted on Oct 18, 2014
MumbaiBhiwandi has emerged as one of those residential localities beyond Thane that banked upon its affordability tag.With extensive industrial development and employment opportunities coming up, the area has so far been successful in attracting developers and investors but is still struggling when it comes to end-users. However, now, Bhiwandi is e ...

Demand increases for residential houses in Vadodara
Posted on Oct 18, 2014
Demand for residential houses has risen by 9 per cent in the Jul-Sep 2014 quarter which had dropped by 3 per cent in the Apr-Jun 2014 quarter, as per the data available with Magicbricks. About 29 per cent buyers were looking for residential houses in the Jan-Mar 2014 quarter, which dipped to 26 per cent in Apr-Jun 2014 quarter. However, in the Jul- ...

Parel: Live near South Mumbai at affordable rents
Posted on Oct 18, 2014
Looking for pocket-friendly rented accommodation close to South Mumbai? Check out options in Parel as rental values have just got affordable here.People wanting access the business districts in South Mumbai and Lower Parel need not pay high rents in Worli, Prabhadevi or the island city anymore. Parel offers an affordable alternative to rent seekers ...

Where should NRIs look for rental returns in Pune
Posted on Oct 18, 2014
NRI investors seeking properties in Pune are looking for long term rental returns. Localities such as Viman Nagar, Kalyani Nagar and Magarpatta may interest them. Why? Lets find out!“I am an NRI and I want to invest in a property in Pune. However, I am looking for rental returns. Please suggest some locations,” says Roshan Wadia, a user on Open Ho ...

6.99% interest on home loans on all properties at Ensaara Metropark
Posted on Oct 18, 2014
Luxora Infrastructure today announced an agreement with HDFC to provide home loans at a special rate of 6.99% per annum. The rate, which is available for a limited period only, is exclusive to Ensaara Metropark. Ensaara latest offer will help reduce the overall cost of home ownership by reducing the buyers home loan interest burden to 6.99%, as co ...

Pace of housing price rise slows on muted demand
Posted on Oct 18, 2014
While the real estate industry has witnessed a slowdown in sales over the last couple of years and is currently running on high unsold inventory, the quarterly house price index (HPI) compiled by the Reserve Bank of India for 10 major cities over the last four years based on actual registered transactions shows that the prices have been constantly ...

Good time to buy commercial property
Posted on Oct 18, 2014
Since prices are at rock bottom, you will get capital appreciation on the property value. These also offer higher rental yields than residential propertyFor those looking to invest in real estate, commercial property is a better option than residential at this point of time, from the investment perspective. Given the oversupply in the commercial re ...

DHFL introduces festive offer on home loans
Posted on Oct 18, 2014
Housing finance company DHFL has announced a fixed processing fee structure for all salaried home loan customers as part of the DHFL Diwali Dhamaka Offer.This festive offer is valid from October 1 to October 31, 2014, the company said in a statement.The company will charge a processing fee of Rs. 5,000 on loans up to Rs. 30 lakh, Rs. 10,000 on loan ...

Godrej Properties sells over 250 apartments at the launch of Godrej Aria
Posted on Oct 11, 2014
Godrej Properties Ltd., the real estate development arm of the Godrej Group, today announced that it has sold over 250 apartments, with an area over 400,000 sq. ft. in just three weeks at the launch of its residential project, Godrej Aria, in Sector 79, Gurgaon. Godrej Aria consists of 6 high rise towers and offers 386 apartments across approximate ...

Kollur: Popular choice among Hyderabad investors
Posted on Oct 11, 2014
Several local developers recently started constructing their projects at strategic locations here. Majority of the demand in Kollur is for residential houses, followed by plots and apartments. Kollur lies on the ORR which connects it to Gachibowli, Hitec City, Financial District and the airport. This makes it connected to two key growth corridors ...

Affordable luxury pushing boundaries in Mumbai
Posted on Oct 11, 2014
The concept of affordable luxury now encompasses all the facilities that will accompany the purchase of a property. The dynamics of pricing and quality of lifestyle in Mumbai, are quite unique and cannot be compared to other cities in India. prices of new launches in Parel, Lower Parel, Sewri and Wadala with resale properties in the Andheri-Goregao ...

Looking for affordable property in Pune? Try Ranjangaon
Posted on Oct 11, 2014
If you are planning on an investment and have 3-5 years to wait before your investment gives returns, try Ranjangaon. While social infrastructure might not be fully developed for an end-user, Ranjangaon is a safe bet for investors. Ranjangaon is not too far to enjoy the benefits of a satellite town kind of status. So, 3-5 years would be a good tim ...




Recent Articles
Charges other than interest cost associated with home loans
Dewan Housing Finance Corporation Ltd offers Diwali special home loan fee rates in different slabs
Hyderabad v/s Secunderabad: Where to invest?
Bangalore Become the Most Favorite Property Investment Destination for NRIs
Home loan rates likely to soften
Pick your home in just Rs 15 lakh
6 reasons why Andhraites keen to invest in Hyderabad
Tips to Remember When Buying a Luxury Property
Four reasons why Bhiwandi attracts end-users
Demand increases for residential houses in Vadodara

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