Home loan charges
Need to understand which home loan charges can be bargained or are hidden and not shared yet to me. Buying almost ready property in Bangalore.
Curent charges shared with me:
- SBI - interest - 8.4 % Legal and valuation ~ 5.2k Property Insurance ~ 15k one time mandatory as per bank MOD - 0.3%
- HDFC interest - 8.3 % Processing - 2 k Property Insurance ~ says later bank will call, it is optional MOD - 0.2%
Talking product sense with Ridhi
9 min AI interview5 questions
I will say that there is another thing which all banks hide. Ask when what are the charges when repo rate changes? Navi does it for free.
HDFC/SBI is charging for that. They will we won't charge you on call but when time comes they say you signed the agreement.
I am expecting repo rates to go down soon. So if you want to switch to lower interest you will be charged. No charges if repo rate goes up
Point 12 in HDFC fucked me.
Switch to lower rate in variable rate loan.
Upto 0.5% of the principal outstanding and undisbursed amount at the time of conversion. Plus taxes.
So careful on this point. If your loan is for 10-20 years this will hit you badly
talk to creditdharma about home loans once, Highly recommended
Sometimes processing fee can be bargained or waived off. But I think that’s when there is a offer from them
Mostly builders of all rera approved projects will take pre-authorization from nationalized banks and NBFCs. Check with your builder once. In that case, you won't incur any legal & additional charges. I went with SBI last year. Even insurance was optional. Compared to HDFC, SBI is good when it comes to pre-payment. Online, hassle free and reduces your standing principle on same day
Check other psu banks as well. they may have lesser interest rate
I thought SBI and other PSU bank interest rates are the lowest because they have very excruciating documentation requirements and it’s difficult to be 100% complaint. Private sector banks sometimes are lenient and services will be good but rates are higher. Here you are getting best of both worlds so HDFC seems to be the better option.
On your main question, I think stamp duty and registration is missing. Also, loan processing fees could be one more. However, all charges need to be in writing somewhere or the other in the loan agreement or somewhere else. Ask them to send an email from their official bank email ID with all possible charges right now before you take the loan, and reply to that email that you will not be paying a single rupee more than whatever is mentioned in the email.