Home loan Charges One should Know

1
Home Loan Charges One Should Know
2
Planning to Buy New Home????

• When you plan to buy a house by availing a home
  loan, the biggest cost component you are worried
  about is the interest amount. But apart from
  interest charges, you will have to pay for a
  plethora of other charges as well.

3

• Types of fees banks levy on home loan borrowers  

4
Type 1 Application fees

•  This fee is charged by the bank for processing
  your application. It will be charged upfront
  irrespective of the fact that whether your loan
  application is accepted or rejected. It is
  non-refundable and can go up to 1 of the loan
  amount. Make sure that you do your research
  before applying for home loan as this fee is
  non-refundable.

5
Type 2 Processing fees

•  This fee is charged by banks to verify your
  documents as the process involves people effort
  and legal charges. The processing fee varies from
  bank to bank and usually ranges between 0.5 and
  1.  

6
Type 3 Conversion fees

• It is the fee that you need to pay to reduce the
  interest rate. Suppose, you availed home loan at
  11 in 2012 and now the bank has reduced the
  interest rate to 10.25. So, in order for you to
  benefit from the drop in interest rates, you will
  have to pay a conversion fees that will range
  between 0.5 and 1.0 of the loan amount. 

7

• There are many secondary charges like Legal fees,
  Memorandum of deposit of title deed, Document
  retrieval charges, Prepayment penalties,
  Switching charges

8

• Always clear your doubts and read carefully about
  the charges and fees required to avail Home
  loans. Read about additional charges or for best
  advices on your home loan, consult
  PaisaBazaar.com.

9
(No Transcript)