[roadie_swift]

Originally Posted by huntrz

My home loan and home insurance both are from SBI

Originally Posted by archat68

HDFC does - infact they approached me for the same but I declined.

Originally Posted by NetfreakBombay

When I looked for loan through HDFC, they offered Insurance from HDFC's Insurance company.

Originally Posted by archat68

Yes they approached me to insure my loan with HDFC Standard Life

So, I guess I need to recheck some facts. May be, as huntrz and NfB said, the revenues from the Insurance stream have started to outweigh the risks associated with this process.

I'll check once more in the Market, and see if I can get some definitive update on this. Thanks a lot for the instances, guys.

Cheers,
R_S

[callvvijay]

Hi guys, Sorry for bumping this old thread - but thought of writing in this instead of creating a new one. I need some info regarding home loan. I am planning to buy a flat (resale - around 2 years old) in Bangalore and am planning to go for loan from one of the nationalized banks - IB, SBI, IOB etc.

Can you please let me know the amount/percentage of margin I should shell out as downpayment?

I was told by one person that with respect to IOB, it is just that the engineers will evaluate the property and also my income/repaying capacity etc. and would let me know of my eligibility and (if everything favors) it can even be 90% of the sale value.
On the other hand, IB asks for a downpayment of 30% of the sale value (i.e., if the property is 30l, then I have to shed 9l as downpayment and IB would finance me the remaining 21L.

Your earliest reply would make me decide asap as the current owner is in a bit of hurry. Thanks in advance!!!

[ghodlur]

Originally Posted by callvvijay

I am planning to buy a flat (resale - around 2 years old) in Bangalore and am planning to go for loan from one of the nationalized banks - IB, SBI, IOB etc.
Can you please let me know the amount/percentage of margin I should shell out as downpayment?

Normally the the margin money these days charged by the banks offering home loans is 15% of the total flat value. But before the bank decides to offer you a loan they would need a lot of documents for verification plus your earning status and based on that they would come to a conclusion.

The best way to find out is approach any bank with your salary details and take a provision loan sanction letter, this will give you an idea about how much loan amount you are eligible for. Try the banks where you have a salary account. They would offer better margin money discount.

[vasoo]

Does anybody here has a home loan with ICICI bank? They have now raised the interest my existing housing loan to 13.5% . They are offering me a new loan at 9.5% though. Have anybody tried re-adjusting the interest rates with them? Do they offer the same rates as they give to new customers?

[archat68]

Can anybody give me an idea about the process of reselling a flat which is purchased under a loan. The loan was taken about 18 months ago.

[blackstallion76]

Originally Posted by vasoo

Does anybody here has a home loan with ICICI bank? They have now raised the interest my existing housing loan to 13.5% . They are offering me a new loan at 9.5% though. Have anybody tried re-adjusting the interest rates with them? Do they offer the same rates as they give to new customers?

Yes. Even I am in the same boat. ICICI charges some 1% or so for readjusting existing homeloan rates to new rates. Please check with them.

I am in the same dilemma as to transfer home loan or just readjust.
Because, all other banks are also having 10% interest rates. And transfering loan will incur 2% of prepayment charges + Processing Fee of New Bank.

[ravib]

Originally Posted by blackstallion76

Yes. Even I am in the same boat. ICICI charges some 1% or so for readjusting existing homeloan rates to new rates. Please check with them.

I am in the same dilemma as to transfer home loan or just readjust.
Because, all other banks are also having 10% interest rates. And transfering loan will incur 2% of prepayment charges + Processing Fee of New Bank.

Instead of readjusting within ICICI, my recommendation would be is to transfer the loan to nationalized bank,as it would give you more peace of mind.
If you readjust, over time you will eventually end up again with higher interest rate (if u go with floating rate) and you lose the % of money you spend for readjusting/processing or whatever they call it. IMO no point in doing that.

I had a loan with HSBC and they kept on increasing the rate of interest and last year i decided to transfer it to Indian bank. Till date, i have no problem any time and living with peace of mind, without worrying much about the loan.
Atleast, i can be sure reasonably there are no hidden charges in nationalized banks.

-Ravi

[ghodlur]

To start with the below link can be used to find out whether the refinancing would help. Put in the required parameters and the tool tells us whether the refinancing with the prepayment costs and processing charges is worth it or continuing with the present bank and interest rates is benficial.

Refinance calculator - BankBazaar

[mkh]

Did not see any relevant thread other than this to post
what banks are good to go for a home loan now? ICICI is a MUST avoid i think. Axis, SBI and HDFC and LIC seem like the preferred ones these days. HDFC is quite professional i know, but need to know the best in terms of ease of process, processing charges and MOST imp- how good are they to lower rates when they fall and not only good at raising!

[longhorn]

HDFC is very professional in their dealings and you can close the deal in two weeks flat, but their interest rate is always on the higher side when compared to nationalised banks. Also remember that HDFC Ltd is an NBFC and not a bank. They have this thing called RPLR (reverse prime lending rate).

The interest rate on your home loan will be RPLR - a fixed %. The only problem being the RPLR is very eager to go up but not even half as eager to go down.

For example what they do is if you get your loan at RPLR -3%, and in the next month the interest rate goes down in the market by .5%, in the next month the interest rate offered will be RPLR -3.5% to people applying for loan in the next month. In short, you are not going to get the benefit of the lower rate. But if there is a hike interest rate, they will immediately raise the RPLR. So you get the burden of the higher interest rate.

Nationalised banks are your best bet in the long term even though its difficult to get a loan sanctioned by them. ICICI should be avoided like the plague.

[mkh]

Originally Posted by longhorn

HDFC is very professional in their dealings and you can close the deal in two weeks flat, but their interest rate is always on the higher side when compared to nationalised banks. Also remember that HDFC Ltd is an NBFC and not a bank. They have this thing called RPLR (reverse prime lending rate).

The interest rate on your home loan will be RPLR - a fixed %. The only problem being the RPLR is very eager to go up but not even half as eager to go down.

For example what they do is if you get your loan at RPLR -3%, and in the next month the interest rate goes down in the market by .5%, in the next month the interest rate offered will be RPLR -3.5% to people applying for loan in the next month. In short, you are not going to get the benefit of the lower rate. But if there is a hike interest rate, they will immediately raise the RPLR. So you get the burden of the higher interest rate.

Nationalised banks are your best bet in the long term even though its difficult to get a loan sanctioned by them. ICICI should be avoided like the plague.

Ur right, but HDFC bank is different than HDFC as such i guess- going with HDFC bank maybe better even though BOTH are going to use the RPLR funda. I got a sheet with the rates of RPLR since 10 years, it does go down but as you said you may not get the benefit of the lowered interest rates. ( or do we as the RPLR also comes down-right?)That's what i wanted to check, which bank DOES lower the rates when RBI lowers.

[ravib]

I transferred my home loan from HSBC to Indian Bank last year. Till date i am very happy and absolutely no problem. Their statments are extremly clear and simple with no hidden stuff. Just a simple debit entry to add interest for previous 30 days and a credit when you pay the EMI (for both interest portion & principal).

I would recommend Indian bank, as they deal with things professionally. If your property documents are good and legally perfect, you can get it done very easily. No hassles.

Never go with private banks, as it is really difficult to understand what are the hidden charges they take from you.

-Ravi

[longhorn]

Originally Posted by mkh

Ur right, but HDFC bank is different than HDFC as such i guess- going with HDFC bank maybe better even though BOTH are going to use the RPLR funda. I got a sheet with the rates of RPLR since 10 years, it does go down but as you said you may not get the benefit of the lowered interest rates. ( or do we as the RPLR also comes down-right?)That's what i wanted to check, which bank DOES lower the rates when RBI lowers.

We do get the benefit if the RPLR goes down. Issue is, it hardly does! RPLR is like the gold price nowadays. Shows a strong tendency to go up but rarely comes down. The upward movement is always in the .50 to .75 range while the downshift is almost always .25. I'm not sure that HDFC bank does housing loans. My salary account is with HDFC, but I was redirected to HDFC Ltd by them, when I approached them for a home loan. This was in 2007. I'm not sure whether things have changed after the Centurion Bank of Punjab takeover.

[mkh]

I am looking at HDFC, Axis or SBI. LIC Housing maybe not( not sure)
This is something as additional charge from SBI( other banks did not mention)

 Equitable Mortgage Stamp Duty as per State Government Gazette Notification.
 If the loan amount is more than or equal to Rs.25 lacs, charges towards registration of
bank’s charge with the Sub-Registrar for the property [Max Rs.10000/-].
 Stamp papers for execution of loan documents after the sanction.

Any idea on 1 and 2? HDFC only mentioned that 0.1% of loan as stamp duty but none else did and none mentioned 2 or 3. I guess stamp paper charges are assumed to be by default

[NetfreakBombay]

HDFC and other private sector banks do not register loan agreement. So cost #2 would not apply.

These banks charge a lump sum amount towards stamp duty that covers duty on Equitable agreement and other related papers that have to be franked as stamp.

With registration, bank becomes legal owner of house till loan is paid in full. You are just "allowed" to stay there. This is similar to the way Car loan works where RTO record itself shows car to be hypothicated to bank.

With equitable mortgage, bank can "become" an owner in case of loan default by initiating foreclosure proceedings.