Go Back   Team-BHP > Around the Corner > Shifting gears


Reply
 
Thread Tools Search this Thread
Old 4th July 2012, 13:34   #271
Senior - BHPian
 
PatienceWins's Avatar
 
Join Date: May 2007
Location: Bangalore
Posts: 2,144
Thanked: 254 Times
Default re: Help with a home loan!

Quote:
Originally Posted by benbsb29 View Post
There is an offer with HDFC, where you can increase the spread from the RPLR for the bank. It involves paying a transfer amount, which increases the spread, thereby bringing down the loan interest percent.

I was able to lower the percent by 1%, which should start from next month onwards.
I am going to do this now. I missed this quarter by a few days as July is already on, mine will start in October.

The current rate for me is 13.5%, after the change it will be 10.5%. It is hard to resist though I plan to repay the entire loan soon.
PatienceWins is offline   Reply With Quote
Old 4th July 2012, 13:39   #272
Team-BHP Support
 
benbsb29's Avatar
 
Join Date: Nov 2006
Location: Brisbane
Posts: 7,995
Thanked: 3,427 Times
Default re: Help with a home loan!

Quote:
Originally Posted by PatienceWins View Post
I am going to do this now. I missed this quarter by a few days as July is already on, mine will start in October.

The current rate for me is 13.5%, after the change it will be 10.5%. It is hard to resist though I plan to repay the entire loan soon.
Good thing i decided to get this done at the earliest. How much is the conversion amount working out to in your case? It was a tad less than 20k for me.
benbsb29 is online now   Reply With Quote
Old 4th July 2012, 14:30   #273
BHPian
 
Jaguar's Avatar
 
Join Date: May 2006
Location: Bangalore
Posts: 557
Thanked: 141 Times
Default re: Help with a home loan!

Quote:
Originally Posted by PatienceWins View Post
The current rate for me is 13.5%, after the change it will be 10.5%. It is hard to resist though I plan to repay the entire loan soon.
That is a big drop. I am also being offered a reduced interest of 10.5% from 12%. I have a question regarding this though. What is the legal/moral standpoint of HDFC to offer a reduced interest to whom who pay a fee? Shouldn't they reduce the floating interest themselves?

Quote:
Originally Posted by benbsb29 View Post
Good thing i decided to get this done at the earliest. How much is the conversion amount working out to in your case? It was a tad less than 20k for me.
Same amount for me too. But, shifting to StanC HomeSaver looks like a better option. I can park my liquid funds there and enjoy reduced interests.
Jaguar is offline   Reply With Quote
Old 4th July 2012, 14:36   #274
Team-BHP Support
 
benbsb29's Avatar
 
Join Date: Nov 2006
Location: Brisbane
Posts: 7,995
Thanked: 3,427 Times
Default re: Help with a home loan!

Quote:
Originally Posted by Jaguar View Post
That is a big drop. I am also being offered a reduced interest of 10.5% from 12%. I have a question regarding this though. What is the legal/moral standpoint of HDFC to offer a reduced interest to whom who pay a fee? Shouldn't they reduce the floating interest themselves?
Well, the floating rate depends on the RPLR of the bank. Based on this, your interest rate is decided by a spread (Interest % = RPLR - X) which they would have provided to you at the time of taking the loan. What is being done by the procedure above is increasing the spread (X).
benbsb29 is online now   Reply With Quote
Old 4th July 2012, 17:15   #275
Senior - BHPian
 
PatienceWins's Avatar
 
Join Date: May 2007
Location: Bangalore
Posts: 2,144
Thanked: 254 Times
Default re: Help with a home loan!

Quote:
Originally Posted by benbsb29 View Post
Good thing i decided to get this done at the earliest. How much is the conversion amount working out to in your case? It was a tad less than 20k for me.
I regret postponing it, I did not know that it offers substantial savings compared to my current rate. I realized it only when I used the conversion calculator on the website couple of days back.

The conversion charge for me is around 9K, for the remaining principal of around 18 lakhs.
PatienceWins is offline   Reply With Quote
Old 4th July 2012, 19:17   #276
Senior - BHPian
 
selfdrive's Avatar
 
Join Date: Apr 2010
Location: Pune
Posts: 2,641
Thanked: 2,000 Times
Default re: Help with a home loan!

Quote:
Originally Posted by benbsb29 View Post
There is an offer with HDFC, where you can increase the spread from the RPLR for the bank. It involves paying a transfer amount, which increases the spread, thereby bringing down the loan interest percent.
I have used this too and there is an option if we want to reduce the EMI amount or the loan tenure. I have chosen to reduce the loan tenure as this should also reduce the interest outgo. In fact this seemed more reasonable as the EMI amount decrease was not much whereas the tenure shortening seemed more tempting.

Quote:
Originally Posted by PatienceWins View Post
The conversion charge for me is around 9K, for the remaining principal of around 18 lakhs.
yes, conversion charges are 0.5% of balance principal amount
selfdrive is online now   Reply With Quote
Old 17th August 2012, 10:29   #277
BHPian
 
Join Date: Jul 2010
Location: Bangalore
Posts: 60
Thanked: Once
Default re: Help with a home loan!

I am looking for a home loan >75lacs. I am looking for a bank which does not require me to pay my 20% before they start disbursing. HDFC has this offer where ROI will be fxed 11.25% for first 10 years and then it becomes regular floating again. Is it worth going for? I also concluded to avoid ICICI at all costs by reading horror stories. Or ICICI is also worth considering?
perseus is offline   Reply With Quote
Old 17th August 2012, 10:58   #278
Senior - BHPian
 
ghodlur's Avatar
 
Join Date: Sep 2009
Location: Thane
Posts: 4,961
Thanked: 1,971 Times
Red face re: Help with a home loan!

Quote:
Originally Posted by perseus View Post
I am looking for a bank which does not require me to pay my 20% before they start disbursing.
I am sorry but I dont think you will find such a bank which will not require you to pay your share of the cost. Since RBI has directed all the banks to finance maximum 80% of the cost of the property, you have no choice but to bear the 20% and no bank will release the funds until you paid your part.

If you find such a bank, please share it on the forum.
ghodlur is online now   Reply With Quote
Old 17th August 2012, 12:08   #279
BHPian
 
Join Date: Jul 2010
Location: Bangalore
Posts: 60
Thanked: Once
Default re: Help with a home loan!

Quote:
Originally Posted by ghodlur View Post
I am sorry but I dont think you will find such a bank which will not require you to pay your share of the cost. Since RBI has directed all the banks to finance maximum 80% of the cost of the property, you have no choice but to bear the 20% and no bank will release the funds until you paid your part.

If you find such a bank, please share it on the forum.
ICICI does it for all the reputed builders in Bangalore like Sobha, Mantri , Salpuria etc where you can pay 50% of your share before they start disbursing and rest 50% you can pay on possession. Even HDFC told me I need to pay at least 50% of my share before they start disbursement.
perseus is offline   Reply With Quote
Old 30th August 2012, 11:09   #280
Senior - BHPian
 
shuvc's Avatar
 
Join Date: May 2005
Location: Kolkata
Posts: 2,895
Thanked: 282 Times
Default re: Help with a home loan!

StanC was applying a 14% interest on my home loan. I spoke to ICICI for a Balance Transfer @10.5%. They told me what documents to ask for and also advised me not to mention to StanC that I would be looking for a balance transfer to another bank.

So I called up StanC. I said I will foreclose. They wanted to renegotiate the interest rate and offered me 10.85% with a conversion fee of Rs. 10000. I refused. So they agreed to send me the documents.

A week later I got another call from StanC. Another effort to renegotiate. This time they said they can come down to 11.75% with Rs. 12000 conversion fee !!!! I laughed at them and said, if they can offer me 10.5% with zero conversion fee then I'd willing to listen.

The next day StanC called and agreed to 10.5% with zero conversion fee .. I have asked for a reduction in tenor. I'll need to keep a close eye on the interest rate over the next few quarters. I'm sure they will hike it soon !
shuvc is offline   Reply With Quote
Old 30th August 2012, 13:49   #281
Team-BHP Support
 
mobike008's Avatar
 
Join Date: Sep 2006
Location: Hyderabad
Posts: 10,617
Thanked: 7,727 Times
Default re: Help with a home loan!

Quote:
Originally Posted by shuvc View Post
The next day StanC called and agreed to 10.5% with zero conversion fee .. I have asked for a reduction in tenor. I'll need to keep a close eye on the interest rate over the next few quarters. I'm sure they will hike it soon !
Interesting. In these tough times, customer retention is of extreme importance so you played your cards nicely.

So what is the best current rate of home loan interest in the market? Do they now offer only floating? Fixed rates are things of a past?

Btw, I took a home loan in 2007 at a mouthwatering 7.5% fixed ( Yeah, thats right. Even till date i pay the same fixed rate and will continue till my 20 years tenure if i dont foreclose before that)
mobike008 is offline   Reply With Quote
Old 30th August 2012, 16:10   #282
Senior - BHPian
 
shuvc's Avatar
 
Join Date: May 2005
Location: Kolkata
Posts: 2,895
Thanked: 282 Times
Default re: Help with a home loan!

Quote:
Originally Posted by mobike008 View Post
So what is the best current rate of home loan interest in the market? Do they now offer only floating? Fixed rates are things of a past?
I've seen 10.4 from LIC as the lowest, 2 months back. There could be 10.25s available now. Not sure.

Yes, only floating rate. Some banks may provide rate protection for the first year.

Quote:
Originally Posted by mobike008 View Post
Btw, I took a home loan in 2007 at a mouthwatering 7.5% fixed ( Yeah, thats right. Even till date i pay the same fixed rate and will continue till my 20 years tenure if i dont foreclose before that)
WOW !
shuvc is offline   Reply With Quote
Old 30th August 2012, 16:49   #283
Senior - BHPian
 
ghodlur's Avatar
 
Join Date: Sep 2009
Location: Thane
Posts: 4,961
Thanked: 1,971 Times
Smile re: Help with a home loan!

Quote:
Originally Posted by mobike008 View Post
So what is the best current rate of home loan interest in the market? Do they now offer only floating? Fixed rates are things of a past?

Btw, I took a home loan in 2007 at a mouthwatering 7.5% fixed ( Yeah, thats right. Even till date i pay the same fixed rate and will continue till my 20 years tenure if i dont foreclose before that)
Simply wow. Thats unbelievable, who is the provider?

The best floating rate is being offered by SBI @ 10.25% and there some good news coming from SBI. They are reducing the processing and conversion fees for the home loans. The offer is till end of Nov. The processing fees is now fixed at Rs 1000 per loan irrespective of the loan size. Pls see the link below for details

http://www.moneycontrol.com/news/eco...01.html#toptag
ghodlur is online now   Reply With Quote
Old 30th August 2012, 17:00   #284
Senior - BHPian
 
selfdrive's Avatar
 
Join Date: Apr 2010
Location: Pune
Posts: 2,641
Thanked: 2,000 Times
Default re: Help with a home loan!

Quote:
Originally Posted by mobike008 View Post
Btw, I took a home loan in 2007 at a mouthwatering 7.5% fixed ( Yeah, thats right. Even till date i pay the same fixed rate and will continue till my 20 years tenure if i dont foreclose before that)
yes, I can confirm rates at those levels. I had taken a home loan at fixed 7.75% in late 2006, but had to foreclose it as I ended up selling that apartment.
I am now on 10.5% floating rate for the loan on my new apartment. Only if I had the funds to buy a correct sized apartment in the first place :(

@mobike008, I dont think you should foreclose this one unless you are selling the place (you wont have any otehr option then!). I am no financial expert, but even a FD will give you 9% these days. no point in prepaying either unless you want to increase your loan eligibility for another loan. in terms of amortisation, we anyway pay majority interest in the first third of the loan. just see your balance loan principal amount and you will know. from now on your EMIs will anyway pay towards the principal and less interest. I am sure you know all this, just putting up in case someone else reading finds this useful.

Last edited by selfdrive : 30th August 2012 at 17:04.
selfdrive is online now   Reply With Quote
Old 30th August 2012, 17:14   #285
Team-BHP Support
 
mobike008's Avatar
 
Join Date: Sep 2006
Location: Hyderabad
Posts: 10,617
Thanked: 7,727 Times
Default re: Help with a home loan!

Quote:
Originally Posted by selfdrive View Post
@mobike008, I dont think you should foreclose this one unless you are selling the place (you wont have any otehr option then!). I am no financial expert, but even a FD will give you 9% these days. no point in prepaying either unless you want to increase your loan eligibility for another loan. in terms of amortisation, we anyway pay majority interest in the first third of the loan. just see your balance loan principal amount and you will know. from now on your EMIs will anyway pay towards the principal and less interest. I am sure you know all this, just putting up in case someone else reading finds this useful.
+1 Even though i have the means and werewithal to foreclose the loan.

Mentally, i am not prepared and most probably will not close it. Perhaps, pay some amount towads principal to bring the tenure down a little. maybe till 15 years and continue to enjoy my cheap EMI

Quote:
Originally Posted by ghodlur View Post
Simply wow. Thats unbelievable, who is the provider?
ICICI Bank. My wife was an employee with them then so took the loan on her and my name jointly. Sadly, the loan amount is miniscule ( Rs.15 Lakhs) and i wished i had taken a bigger loan now.

I was even offered 7% floating then but, good sense prevailed and i chose the fixed option and i am glad today that I did.
mobike008 is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
The Cheap Loan or the Smart Loan - SBI Advantage Car Loan keyur Indian Car Loans & Insurance 208 5th July 2017 15:56
Buy car using cash OR Take car loan & prepay home loan? rajshenoy Indian Car Loans & Insurance 13 2nd August 2013 18:16
Loan query - is this loan deal OK (From HDFC) BenjiRoss Indian Car Loans & Insurance 100 2nd September 2010 16:51
Car loan checks returned without closing loan !! ashthedivx Indian Car Loans & Insurance 21 7th November 2008 12:28


All times are GMT +5.5. The time now is 13:17.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks