Home Loan Service Charges and Fees
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It comes in a non-judicial stamp paper, and the fee for the same varies across states. The fee ranges between 2-3% of the delayed amount each month until you fulfil the payment. You can use the funds from a Top-Up Loan in any manner you deem fit. The money can be used to finance another home purchase, renovation and extension of an existing house, and even fund medical emergencies, a wedding, or your children's education. No restrictions are placed on how you wish to utilise this option unless you plan to use for speculation or illegal use. The security for the loan is the equitable mortgage of the property to be financed.
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Keep in mind that these are estimates and may change, in which case you’ll receive a revised estimate. Be sure to carefully review your Closing Disclosure statement, which will specify your final closing costs. Your lender will provide the Closing Disclosure at least three days before closing. These articles, the information therein and their other contents are for information purposes only. All views and/or recommendations are those of the concerned author personally and made purely for information purposes. Nothing contained in the articles should be construed as business, legal, tax, accounting, investment or other advice or as an advertisement or promotion of any project or developer or locality.
The inspection charge is a fee the bank levies for the legal inspection and valuation of the property you are buying. The fee you have to pay depends on the actual charges the lender incurs. You may wish to change the loan repayment tenure due to financial stress or any reason. In that case, the bank will charge a fee for extending the tenure.
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At HDFC, ‘fees on account of external opinion from advocates/technical valuers, as the case may be, is payable on an actual basis as applicable to a given case. Such fees are payable directly to the advocate / technical valuer concerned for the nature of assistance so rendered’, says the bank. However there is no conflict on these services and commissions if any payable are in accordance of the extant regulations. Your right to use the facilities is personal to you; therefore, you agree not to resell or make any commercial use of the facilities. In addition, the Website welcomes your feedback as a user of the facilities. The Website shall have a worldwide, royalty-free, non-exclusive, perpetual, and irrevocable right to use feedback for any purpose, including but not limited to incorporation of such feedback into the Website or other Website software or facilities.
However, with Kotak Mahindra Bank you have to pay only a minimal home loan processing fee, i.e., 0.5 % for salaried and 1 % for self-employed applicants. Yes, various lenders run promotional offers from time to time, offering processing fee waiver on home loans. You must check such promotional offers before you apply for a home loan.
Home Loan Processing Fee of All Banks in India
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The processing fee for home loan is a percentage charged on the loan amount that you have applied for. These home loan processing fees are non-refundable, i.e. the bank will not refund the amount, whether the loan application is approved or not. The reason banks and finance companies charge processing fees is to cover the costs of collecting, maintaining and verifying documents to get the loan approved. This takes time and manpower, for which each bank charges its own fees. The bank must incur certain administrative costs while processing and sanctioning your loan. This is typically a small amount that varies by bank and typically costs between 0.5 percent and 2.50 percent of the total loan amount.
When the fee should be paid
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Typically, the processing fee is only charged once your application has been approved. Home renovation loan is used to specifically upgrade your home, be it redecorating or repairing. The home loan processing fee that the bank charges for this type of loan ranges from 0.25 % to 2.00 %.
A delay in doing so would result in default, while also attracting monetary penalties. While some banks may charge a fixed amount, others may charge a fixed percentage on the amount of installment due, as the penalty. Since this task involves legal and technical experts that the banks hire, the borrower is made to bear the cost of the legal and technical assessment.
Moreover, the fact that you can avail of the option on your existing Home Loan makes the process less cumbersome. So if you're moving into that new house right away and need some more funds to settle into your place, this may be an option you'd want to take a look at. Want to have more flexibility to negotiate with builders and sellers?
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