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Old 7th March 2017, 11:21   #496
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Default Re: Help with a home loan!

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Originally Posted by Mr.Boss View Post
2) If the answer to question 1 is 'YES'
a) Which banks do provide loan for bank auctioned properties?
b) How much % of market value can I avail loan (considering the age of property)
c) What will be the average ROI & tenure?

Not specifically an answer to your question. It is a solution to earlier queries.

That being said., please find attached an excel sheet I had used a while ago.

If the calculated result (of your inputs) is green, you have a better chance of getting a bridge loan.

There are 3 ratio's banks look out for.
  1. LTV or loan to property value ratio
  2. DSR - debt to income ratio. I know "S" means something. I do not remember it now.
  3. Fixed Obligation to income ratio
  • The excel has a few extra sheets which have configurable parameters. A few add in's on my system are registered in the excel. Though not used in any way.
    So you may ignore error popups while opening.
  • It has a few macro's. So you may need to enable this on your system.

I have color coded the ratio's which are derived from your inputs. This is everything you enter in the yellow cells.

I created a random list of banks which can be selected in the first sheet.

The actual ratio value's are authentic.
Attached Files
File Type: xls Loan Solutions - Copy.xls (341.5 KB, 56 views)
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Old 23rd March 2017, 18:15   #497
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Default Re: Help with a home loan!

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Originally Posted by ashwinsid View Post
I took a home loan from Corporation bank in 2014 @ 10.25% floating interest rate.

As on date, the interest rate is 9.60% and MCLR interest rate is 9.50%.

Today, I received this letter from the bank giving me an option to convert from COBAR/BASE rate to MCLR interest rate. The letter copy is attached below.

I have two questions:

1. What does this conversion mean and should I go for it?

2. More importantly, I was told by a friend that even though the interest rate is now 9.60%, the bank may not have applied that rate to my loan unless I have made a written request to the bank. Is it true? Because I thought floating interest means the applicable interest on my loan will either decrease or increase based on prevailing rates.
Your friend is right. Even though they call it "floating" the bank may or may not have reduced your effective interest rate. For example, my old housing loan with Axis Bank was at 10.85% which they "reduced" to 10.45% but when I checked in the market they were offering new customers a 9.45% rate. My current home loan with ICICI was at 9.4% (tagged to base rate, sanctioned just before the MCLR regime kicked in April 2016). I recently negotiated it to 8.5% with a threat of taking my business away to HDFC which was offering me that rate.

Please also check the fine print for "MCLR conversion"- ICICI initially told me I had to pay 0.5% on the entire loan amount as conversion charge. Eventually we agreed on a more reasonable number.

I was quite impressed by HDFC during the sales process but one reason I stayed clear of them is that unlike banks like ICICI and SBI, HDFC (which is an NBFC) does not follow MCLR regime (they follow RPLR minus spread method). I really don't know the larger implications since currently the effective interest rate is the same.

With MCLR, my interest rate is now fixed at 8.5% for one year post which it will get reset in line with the current prevailing rate (at no recurring charge to me if the rate decreases further). That seems reasonable.

One learning for me in all this is to be extremely sensitive to what your bank is charging you for the housing loan and renegotiate as needed. Lunchtime conversation at work revealed that a colleague is still paying 11.5% interest on his home loan The number of EMIs that reduce when your tenure gets recast with the lower interest rate is substantial.
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Old 23rd March 2017, 20:03   #498
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Default Re: Help with a home loan!

I have a housing loan with HDFC for last 7 years. I want to close the loan by paying the outstanding amount. But HDFC is asking that I have to show that the amount I want to pay is there in my account for at least 6 month. They are also asking bank statement as a proof of my source of money.
Is it the real practice followed ?Isn't this too much? Why can't I prepay my loan by borrowing money from someone else?
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Old 23rd March 2017, 20:09   #499
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Quote:
Originally Posted by archat68 View Post
I have a housing loan with HDFC for last 7 years. I want to close the loan by paying the outstanding amount. But HDFC is asking that I have to show that the amount I want to pay is there in my account for at least 6 month. They are also asking bank statement as a proof of my source of money.
Is it the real practice followed ?Isn't this too much? Why can't I prepay my loan by borrowing money from someone else?
That's plain B.S. I too pre-closed my loan from HDFC in 2015. Absolutely no questions asked about source of funds. In my case too the funds were partially mine and partially borrowed. This was in Thiruvalla, Kerala. Check with any other center too. My home center was in Dombivli, Thane.
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Old 23rd March 2017, 20:21   #500
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Default Re: Help with a home loan!

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Originally Posted by archat68 View Post
I have a housing loan with HDFC for last 7 years. I want to close the loan by paying the outstanding amount. But HDFC is asking that I have to show that the amount I want to pay is there in my account for at least 6 month. They are also asking bank statement as a proof of my source of money.
Is it the real practice followed ?Isn't this too much? Why can't I prepay my loan by borrowing money from someone else?
This is not at all true, I also keep partially closing my loan by paying some amount and never have been asked any questions. Only condition is that the cheque has to be issued from my account. I partially close the loan and reduce the number of years , keeping the EMI constant.

Regards
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Old 7th April 2017, 14:18   #501
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Default Re: Help with a home loan!

Quote:
Originally Posted by archat68 View Post
I have a housing loan with HDFC for last 7 years. I want to close the loan by paying the outstanding amount. But HDFC is asking that I have to show that the amount I want to pay is there in my account for at least 6 month. They are also asking bank statement as a proof of my source of money.
Is it the real practice followed ?Isn't this too much? Why can't I prepay my loan by borrowing money from someone else?
This is not true , I thought things may have changed post demonetization and and there is a chance that they may insist, but that is not the case from my personal experience.
I did not understand the logic of having to have that money in your account for 6 months ? If I had that much money lying around in the bank, wouldnt I want to invest/repay my debts immediately ?
I think it would be a good option to have them request you the documents via email, and you can forward it to the banking ombudsman to see if its legal. The repaid amount should be by cheque and from the borrow/co-borrower's account only.
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Old 7th April 2017, 16:48   #502
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Default Re: Help with a home loan!

Need help from experts on couple of queries related to home loan.

I have a home loan with SBI from Dec 2014. I took it at 10.3% ROI with an EMI of 33k per month. Over the period as the interest rate got reduced, it was updated in my account and current rate is 9.4%. Recently had a word with the manager to convert to MCLR of 8.6 for which they are charging 0.5% of current home loan balance. My question here is even though the interest rate kept on changing, my EMI is still 33k per month. Is this how it has to be, or am I being charged more.
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Old 7th April 2017, 16:52   #503
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Originally Posted by venkikewl View Post
Need help from experts on couple of queries related to home loan.

Is this how it has to be, or am I being charged more.

This is how it is. All things remaining the same, the loan will get over sooner than the original tenure.
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Old 8th April 2017, 01:33   #504
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Quote:
Originally Posted by venkikewl View Post
Need help from experts on couple of queries related to home loan.



I have a home loan with SBI from Dec 2014. I took it at 10.3% ROI with an EMI of 33k per month. Over the period as the interest rate got reduced, it was updated in my account and current rate is 9.4%. Recently had a word with the manager to convert to MCLR of 8.6 for which they are charging 0.5% of current home loan balance. My question here is even though the interest rate kept on changing, my EMI is still 33k per month. Is this how it has to be, or am I being charged more.

Yes your interest portion must have significantly come down by at least 5k and principal part has increased. So you tenure will come down.
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Old 8th April 2017, 19:37   #505
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Can someone help to understand the process of transferring money from max gain to loan account. I don't want keep lot of funds in max gain as it is risky b/c it has cheque and online banking facility. Even bank officials are not able to answer this simple query.
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Old 9th April 2017, 16:18   #506
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Default Re: Help with a home loan!

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Originally Posted by avimal View Post
Can someone help to understand the process of transferring money from max gain to loan account. I don't want keep lot of funds in max gain as it is risky b/c it has cheque and online banking facility. Even bank officials are not able to answer this simple query.
Sorry if I didn't follow but, isn't OD account or maxgain account same as loan account? Which loan account you are referring to?

I have HDFC home loan. Can someone help me where I can find my current outstanding principal amount? The one available in menu always shows my current principal outstanding zero! Also I can't find options to explore amortization schedule, how much i repaid, how much is yet to be paid, interest breakup etc. on HDFC online portal.
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Old 9th April 2017, 18:39   #507
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Originally Posted by StepUP! View Post
Sorry if I didn't follow but, isn't OD account or maxgain account same as loan account? Which loan account you are referring to?
Yes. It is same and that is the problem. What I prepay to this account, it goes to max gain from which funds can be withdrawn. It is risky to keep lot of funds in max gain account as it has online banking and cheque facility. I want to prepay my loan such that prepaid funds can not be withdrawn by any means.
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Old 10th April 2017, 20:19   #508
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Default Re: Help with a home loan!

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Originally Posted by avimal View Post
Yes. It is same and that is the problem. What I prepay to this account, it goes to max gain from which funds can be withdrawn. It is risky to keep lot of funds in max gain account as it has online banking and cheque facility. I want to prepay my loan such that prepaid funds can not be withdrawn by any means.
Isn't easy withdrawal the very reason one goes with a Max gain type product? If used effectively, it can be the last loan you ever take. I am thinking of funding my next car purchase with the money kept in Max gain and enjoy tax benefits on the same.
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Old 10th April 2017, 21:30   #509
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Found the process after discussing with a senior person in SBI loan department. One has to give a request in writing for transferring funds from max gain for pre payment. I am shocked that branch managers are not aware of the simple process.
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Old 11th April 2017, 17:17   #510
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Default Re: Help with a home loan!

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Originally Posted by StepUP! View Post
I have HDFC home loan. Can someone help me where I can find my current outstanding principal amount? The one available in menu always shows my current principal outstanding zero! Also I can't find options to explore amortization schedule, how much i repaid, how much is yet to be paid, interest breakup etc. on HDFC online portal.
Unfortunately dude, HDFC online portal SUCKS big time. Even simple things like the current outstanding principal is not updated. Mine still shows "Current outstanding as of 1-Apr-2016". There is no option to pay online (in case you want to prepay some amount) by linking your bank account either. To know your principal outstanding I think you need to visit the branch, for the most up to date figure.
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