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Old 4th January 2011, 09:46   #151
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Originally Posted by amitpunjani View Post
Hi,

I am planning to take a home loan from HDF for about Rs 12 Lacs. The rate of interest they are offering is @9.5% on which they are not ready to negotiate and 0.5% is the processing fees.
After 3 years, i can pay the whole amount without any pre closure charges.

Is the rate of interest seems competative or should i shop more with other banks. Even called ICICI they are offering on same rate of interest. But some how i am not very keen to go with ICICI.

Will Appreciate your inputs.

Thanks

Amit
Hi Amit,

At the ticket size of 12 Lacs, this is a very good rate. However if you are still looking, the only players to possibly beat this will be SBI and some other Nationalized Banks (special schemes only) and among private players, you might want to check out SCB.

Please note that processing a HL with SBI will be inordinately time-consuming.

Pls PM me if you need further info.

Cheers,
R_S
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Old 4th January 2011, 09:54   #152
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Question re: Help with a home loan!

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Originally Posted by roadie_swift View Post
Hope the above the responses help. Please let me know in case you need any more help.
Cheers,
R_S
@roadie_swift,

Thanks a lot for the response. Most of my queries are answered, I think I will have to specifically approach the bank to check if there is anything different (read surprises) from what you mentioned.

One doubt though, will the bank do such a favour and waive off the fore closure charges. I will have to find it out.

What happens to the original agreement copy after my loan account is closed, will it be handed back to me or again kept in custody of the bank. Also need your help in identifying the documents needed during sale of re-sale flat, any website references?
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Old 4th January 2011, 09:59   #153
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Default re: Help with a home loan!

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Originally Posted by ghodlur View Post
@roadie_swift,

Thanks a lot for the response. Most of my queries are answered, I think I will have to specifically approach the bank to check if there is anything different (read surprises) from what you mentioned.

One doubt though, will the bank do such a favour and waive off the fore closure charges. I will have to find it out.

What happens to the original agreement copy after my loan account is closed, will it be handed back to me or again kept in custody of the bank. Also need your help in identifying the documents needed during sale of re-sale flat, any website references?
Hi Roadie_Swift

Thanks for the prompt reply , sorry will bother you again as i need some more information.


Thanks ones again

Amit
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Old 4th January 2011, 10:08   #154
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Default re: Help with a home loan!

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Originally Posted by ghodlur View Post
@roadie_swift,

Thanks a lot for the response. Most of my queries are answered, I think I will have to specifically approach the bank to check if there is anything different (read surprises) from what you mentioned.

One doubt though, will the bank do such a favour and waive off the fore closure charges. I will have to find it out.

What happens to the original agreement copy after my loan account is closed, will it be handed back to me or again kept in custody of the bank. Also need your help in identifying the documents needed during sale of re-sale flat, any website references?

@ Ghodlur - Man, that is not at all a favor!! Don't even think in those terms. Look at it this way - The bank charges you a FCL fee because its portfolio is being eroded due to your loan closure. In the case we discussed above, the portfolio remains the same - if not increase, if your buyer decided to take on a higher loan. So, there is absolutely no question of the bank charging you any FCL penalty. Don't ask them - INSIST ON IT. They will be more than happy to waive it off - or not charging it, rather.

Also, don't forget the bank is going to charge Processing Fees to your buyer. So, it earned Proc Fee from you, then it earned interest from you, now it will repeat the same from your buyer - And, for the same parcel of its portfolio! So absolutely no question of a FCL penalty.

Now for the second point, even if your loan account is closed, all you will get from the bank is a Closure Letter which confirms that there are no dues receivable from you. This is because, in case of a property loan, a bank will always insist on taking into custody ALL the agreements that have been executed with regard to the subject property. So, the agreement between, for example, the builder and you, and also the agreement between you and buyer, which you will now execute, will be retained by the bank. You can insist on getting a copy of all the property documents, which the bank will provide you with. They may try to charge you some money for retrieval of property document copies, but they will waive it off without much ado.

Regarding the third point, when you say the documents needed during sale of re-sale flat, what exact transaction are you referring to? If it's the same transaction, you don't need to come up with any specific additional documents. The bank will take care of all documentation, apart only from the new agreement to be executed. If you can just clarify which transaction you mean, I'll provide you with an exhaustive list of all documents needed. Glad to help... :-)

Cheers,
R_S

Last edited by roadie_swift : 4th January 2011 at 10:10.
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Old 4th January 2011, 10:12   #155
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Default re: Help with a home loan!

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Originally Posted by amitpunjani View Post
Hi Roadie_Swift

Thanks for the prompt reply , sorry will bother you again as i need some more information.


Thanks ones again

Amit
No probs at all, Amit bhai, you can bother me any time you wish. You can also PM me for any specific details you may want. Happy transacting!

Cheers,
R_S
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Old 4th January 2011, 10:13   #156
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This only applies to the payments that will be demanded *after* July 1st, 2010, right?
This new rule was brought into effect in the last budget which was presented, and we also had a discussion which i had initiated on this on the Real Estate thread. In addition, even premium facilities offered would be subject to additional service tax, such as a pool-facing apartment.
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Old 4th January 2011, 10:21   #157
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Question re: Help with a home loan!

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Man, that is not at all a favor!! Don't ask them - INSIST ON IT. They will be more than happy to waive it off - or not charging it, rather.
Thanks a lot man, appreciate your response, I will make it a point to get the FCL waived off

Quote:
Now for the second point, even if your loan account is closed, all you will get from the bank is a Closure Letter which confirms that there are no dues receivable from you
Agreed, Thanks.

Quote:
Regarding the third point, when you say the documents needed during sale of re-sale flat, what exact transaction are you referring to? If it's the same transaction, you don't need to come up with any specific additional documents. The bank will take care of all documentation, apart only from the new agreement to be executed. If you can just clarify which transaction you mean, I'll provide you with an exhaustive list of all documents needed. Glad to help... :-
Regarding my other query related to documents, do I have to provide any other document other than the new agreement. Since most of the times the builders have a tie up with a particular bank where they provide most of the documents related to the property. My guess this would still suffice and the only additional documents which need to be given is the new agreement duly stamped and registered. Rest of the documentation will be solely of the buyer isn't it?
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Old 4th January 2011, 10:33   #158
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Default re: Help with a home loan!

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This new rule was brought into effect in the last budget which was presented, and we also had a discussion which i had initiated on this on the Real Estate thread. In addition, even premium facilities offered would be subject to additional service tax, such as a pool-facing apartment.
I was given to understand that the said clause / rule was presented - but it was not vetted; therefore the same has not been implemented yet!
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Old 4th January 2011, 11:29   #159
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Default re: Help with a home loan!

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I was given to understand that the said clause / rule was presented - but it was not vetted; therefore the same has not been implemented yet!
SD, were you referring to the first part of my post, or the second? Going by DCEite's query above, i believe the first is implemented, not sure if the tax on premium facilities is in effect.

Guess roadie_swift can help here.
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Old 4th January 2011, 14:05   #160
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Default re: Help with a home loan!

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Originally Posted by ghodlur View Post
My guess this would still suffice and the only additional documents which need to be given is the new agreement duly stamped and registered. Rest of the documentation will be solely of the buyer isn't it?
Absolutely right.

You being the seller, will only have to participate in the execution of the sale deed.

Normally, the seller is responsible for providing all property related documents such as the previous chain of agreements, sanctioned plan copy, commencement/completion certificates/OC, title report etc.

However, in your case, since all your dox are already lying with the bank, which is just going to transfer the loan obligation from your name to the buyer's name, there is no need to provide all these dox again.

The bank will do a title search report, and then, as per the requirements stated in the report, check their own vaults to confirm that all other dox, apart from the newly made agreement, are present in their custody.

However, if it is discovered that some document in that is missing (which is highly unlikely), then they might ask you - as the seller - to procure it. Unless that happens, you rest easy.

Cheers,
R_S
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Old 4th January 2011, 14:13   #161
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Default re: Help with a home loan!

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Originally Posted by benbsb29 View Post
SD, were you referring to the first part of my post, or the second? Going by DCEite's query above, i believe the first is implemented, not sure if the tax on premium facilities is in effect.

Guess roadie_swift can help here.
Hi Ben and SD,

The proposal for additional tax on amenities did not go through.

However, to stop Builders/Buyers from exploiting the loophole, the service tax ambit covers ALL the agreements made in respect of a property - i.e. If a builder makes a sale deed for Rs.100 and then also executes a separate amenities agreement for Rs.50, then the service tax will be applied to 25% of the total value of Rs.150 will be applied.

However, Builders being Builders, have of course circumvented this to a large extent by using other, more creative means. ;-)

Cheers,
R_S
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Old 4th January 2011, 14:58   #162
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Question re: Help with a home loan!

@roadie_swift,

I guess you are the sage with the halo as far as my queries are concerned. A couple of more of them.
1) How to accomodate the parking in the agreement? Does parking area needs to be registered seperately?
2) In my case the Society is yet to be formed. So do I take NOC from the builder? How does one normally handle the documentation regarding the share certificate since the builder had taken my signatures on the society formation forms?
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Old 4th January 2011, 16:39   #163
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Thanks RS

I am buying a property in Mira Road with a 35 lac loan. The builder had sent me a request letter / statement for Service Tax (ST) of 4.1 lac. During the same time this decision on ST was being taken by government.

I called the Sales office and told that the same mandate had not gone through as far as my knowledge, and they said - "those property's which are under construction will be charged with ST if this rule goes through"

So they send me statements with a mention that I have to bear the ST as part of my balance payments that have to be made as per the slabs (built).

In short they are covering their back side; hope & pray that I get my posseession before this rule is passed - will save 4 odd lacs to be paid to the authorities :(

Quote:
However, Builders being Builders, have of course circumvented this to a large extent by using other, more creative means. ;-)
However I dint quite get what you mentioned above RS
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Old 4th January 2011, 16:49   #164
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Default re: Help with a home loan!

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Originally Posted by saildrive View Post
Thanks RS

I am buying a property in Mira Road with a 35 lac loan. The builder had sent me a request letter / statement for Service Tax (ST) of 4.1 lac. During the same time this decision on ST was being taken by government.

I called the Sales office and told that the same mandate had not gone through as far as my knowledge, and they said - "those property's which are under construction will be charged with ST if this rule goes through"

So they send me statements with a mention that I have to bear the ST as part of my balance payments that have to be made as per the slabs (built).

In short they are covering their back side; hope & pray that I get my posseession before this rule is passed - will save 4 odd lacs to be paid to the authorities :(


However I dint quite get what you mentioned above RS
Is the property value more than 1 Cr ?
How did they arrive at figure of 4.1 lacs ? It should be 10 % of 25% of total cost of flat.
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Old 4th January 2011, 17:17   #165
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Originally Posted by ghodlur View Post
@roadie_swift,

I guess you are the sage with the halo as far as my queries are concerned. A couple of more of them.
1) How to accomodate the parking in the agreement? Does parking area needs to be registered seperately?
2) In my case the Society is yet to be formed. So do I take NOC from the builder? How does one normally handle the documentation regarding the share certificate since the builder had taken my signatures on the society formation forms?
Haha, I kind of like the image you have conjured up... :-)

Ok, regarding the first query, as per a recent Supreme Court ruling, the Builders have to include the price of parking space into the price of the flat itself, they cannot charge a separate price. Earlier, a parking space would be specifically mentioned in the sale deed, and charged separately (but not on a per-sqft basis). In any case, it does not make any difference to us as flat-buyers, since we have to pay the final price which we have negotiated with the Builder, and components be damned.

However, if you wish, you can definitely register the parking area separately into the agreement, just to make sure it stays with your flat. But this is not mandatory. If you want a specific mention of the parking space, do it in Schedule-II which will be towards the end of the agreement, containing the description of the property.

Regarding the second query, till the time the title conveyance from Builder to the Society does not take place, NOC from a Builder is perfectly valid. In case the construction is quite old, say more than 5 yrs or so, the bank lawyers might ask you to explain why the society has not been formed as yet - but nothing to be worried about, this is fine and just to ensure that the building is not embroiled in some sort of litigation - which they will come to know in their due diligence anyway - so no issues.

As and when the members get together, register the society, and the title conveyance happens, the Society will issue the share certificates to you. Usually this process does not take a long time once started, and till then, the Builder's NOC, coupled with copies of his Power of Attorney and Development Agreement, is sufficient for all legal purposes.

Cheers,
R_S
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