Why use us for Mortgage Loan requirements?
If you’re looking for a Mortgage Loan but don’t know where to start, there is no need to worry. Many people find Home Loans totally confusing and it’s not surprising given that there are thousands of deals to choose from. What’s more the ‘fear factor’ is compounded by the fact you are talking about borrowing a lot of money so it’s important to get the decision right.
However, in actual fact, Mortgage Loans aren’t that complicated. Here we look at the basic things to think about when comparing products so you’re more confident about working out which is the best Home Loan for you.
Find the perfect Loan Against Property for all your Needs
Loan Against Property Rates
Are you a Property owner who has been searching to avail a long-term loan? Have you thought about taking the loan against your property? Read on to find the details you should know before choosing to take out a loan against property.
What is a loan against Property?
A Loan Against property is only available to those who own a Ready to move in Residential, commercial and Industrial Property. These types of loans are called as a secured loan because the Loan amount is secured against an asset, which can be repossessed in case of default in loan repayments. This reduces the risk to the lender, which may result in attractive interest rates, but presents a huge risk to the borrower who could lose their property if payments have defaulted.
How much can I borrow?
The amount of the loan sanctioned can vary from lender to lender, but the Loan against property usually up to 50 to 85% of Property Market Value. Banks feel more secure in giving loans to borrowers who are prepared to low amount against their property value.
What can I use loan against the property for?
Loan against property is usually higher amounts and Loan against property can be availed to consolidate existing Loans, working capital, family or personal expenses.
How quickly must I repay my Loan against Property?
Loan against property can be availed for a minimum term of 5 years; its repayment can be spread across a term of up to 20 years. This higher term can mean that borrowers can benefit from low monthly interest rates, but they will have to pay more interest. Now Banks has removed part payment charges on loan against property and this option should be exercised regularly to repay loan against property.
Can a Loan against Property be repaid early?
Yes, there is the opportunity to repay a loan against property early and you don’t have to pay early settlement charges if payment is made through personal savings.
Our property is jointly owned by family members, does this mean that the Loan against property must also be in Joint names?
A Loan against property is secured to the property rather than to the individual, which means that if the property is jointly owned, both owners must be taken on a loan application and their credit score will be considered for the loan. In addition to credit score, their financial eligibility will also be assessed to measure the EMI against their income.
Are there similar alternatives to Loan Against Property loan?
Some Property owners choose to release some value from their home by switching mortgages. For example, if your property was worth Rs.3.50cr but your mortgage was at Rs. 1.20cr which is about 34% of property value. You may increase loan amount up to 50% to 75% of the property market price and the amount can be used to pay off high-interest loans, working capital, property renovation and business expansion. You may also save money by transferring an existing Loan against a property to a lower interest rate without paying any charges.
My home is in negative Area; can I still apply for a Loan Against Property?
Your chances of obtaining a Loan against Property may be affected if your home is in negative area, or built without approved sanction plant.
Mortgage Loan Processing Fees
Most Home Loan provider banks charge a LAP loan processing fee, which can vary from Rs. 5000/- up to 1% of loan amount. But you don’t worry our loan experts will get you the maximum possible discount on processing fees or even try to make it to lowest.
Also, bear in mind that these processing fee costs can sometimes comprise of two fees. In increasing number of lenders charge a non-refundable processing fee which is effectively a loan application fee. You won’t get back this back if you end up not taking the Mortgage Loan and even loan application rejection due to low Cibil score, Loan to Value ration or your financial eligibility.
The second type of fee is a processing fee which you pay on completion of the Loan against the property so you won’t have to pay it if, for any reason, you don’t take the Loan.
There is the bank who charge legal and technical valuation fee in addition to processing fees.
Remember to always include these cost, as even if a lender is offering a seemingly unbeatable rate, higher fees could mean that it actually works out to be more cost-effective to opt for a higher rate of other banks, but with a much lower fee, or no fee at all.
It will all depend on how much you are looking to borrow. A high fee is often worth paying in order to secure a low-interest rate if you are applying for a large Loan.
Cibil Score for Loan Approval
Banks offers Home Loan based on your current property Valuation and your financial eligibility. In addition to this, Banks will also check your cibil score and it has to be more than 650. In case you don’t have any idea about your current cibil score, connect with us Our team is ready to help you.
How to find the best deal
Finding the right Loan against Property to suit your needs can be a challenge, especially with so many different offers available.
This is where Home Loan DSA can help. Our Loan comparison service covers the entire market, and, once you’ve answered a few simple questions, it can help search a better product as per your requirement. Our team will do all the legwork for you and get you the best possible deals to meet your home loan requirement.
If you need an independent advice, then we’ve very experienced Home Loan advisor who can talk you through the range of available options, and help you through the application process once you’ve decided on the best Home Loan for you.
Calculate Your Loan Eligibility
We suggest you must get your loan eligibility checked. You may also apply for a pre-approved loan before property search. This will put you in a stronger position as a buyer. Bank will also assess the valuation of the property you choose, to ensure they feel the price agreed is in line with the market value.