What are the different types?
Home Loan is offered to individuals who wish to purchase or construct a house. The property is mortgaged to the lender as a security till the repayment of the loan. The bank or financial institution will hold the title or deed to the property till the loan has been paid back with the interest due for it.
What is the maximum amount that can be borrowed?
Through a Home Loan, one can purchase or construct a new house/ apartment. A Home Improvement loan is offered to those who wish to renovate their houses; a Home Extension loan is for consumers planning to add extra space to their house such as a new room or a new wing; a Loan against Property is offered for a individuals seeking loan against an already existing property; a Land Purchase Loan is provided to consumers buying land as an investment, maybe to build a house later on and a Balance transfer loan is basically a home loan to pay off an existing home loan as this enables you to avail a loan with a lower interest rate.
What is the maximum amount that can be borrowed?
The amount that can be financed typically depends on the status of the borrower (resident/non-resident), type of home loan (renovation, property purchase, property extension) and the financial institute. It is generally offered for up to 80-85% of the cost of the property.
What is the typical repayment duration?
The repayment tenure takes into consideration the repayment ability of the borrower based on their income and existing EMIs. The typical duration for which a home loan can be taken is anywhere between 5-30 years.
What are the types of interest rates?
The interest rates for Home Loans can be fixed or floating, or partly fixed and or partly floating, suiting the needs of the borrower.
What other costs will I incur while applying for a Home Loan?
For a Home Loan, the basic registration charges, transfer charges and stamp duty costs are added to the cost of the home. Some other charges include: Processing charge or booking fee – paid to the lender when you apply for the loan. It could be fixed or a percentage of the loan amount Pre-payment penalty – if the loan is repaid before the agreed duration, some lenders may charge a penalty, up to 2% of the amount pre-paid. Miscellaneous costs – there could be a documentation or legal fee, also known as “application fee”
Please contact our Home loan experts for more information about rates or home loan options.