[roy_libran]

^^^ Thanks Longhorn for bolstering my leaning towards IDBI. You have indeed mentioned a very pertinent point.

[mithun]

Originally Posted by longhorn

I haven't had any major customer service related issues with HDFC so far. However HDFC is a housing finance company and IDBI is a bank. In case the govt decides enough is enough and put their foot down and say that you can't charge different interest rates for new and old customers - in that scenario you would be better off with IDBI. Moreover since banks have to follow the base rate system(not required for HFC's) I guess you would get better transparency with IDBI.

FYI, HDFC is a Scheduled Commercial Bank and not a housing finance company now.

See: http://www.hdfcbank.com/aboutus/general/default.htm

[chbpreddy]

I'm told IDBI is a central government bank. I recently closed a home loan with them. If you plan to prepay / part-pay the amount, IDBI is the best. They don't charge anything for this. They are pretty transparent and quick with everything except the policy around higher interest rates for old customers.

[longhorn]

Originally Posted by mithun

FYI, HDFC is a Scheduled Commercial Bank and not a housing finance company now.

See: http://www.hdfcbank.com/aboutus/general/default.htm

HDFC Bank is a bank and they do not give housing loans. Atleast they didn't when I went to them for a housing loan. What they usually do is redirect you to HDFC Ltd which is a HFC.

[roy_libran]

HDFC Ltd. is indeed a HFC and not a bank. I'm going to move my disbursement with IDBI tomorrow. Thanks for the suggestions gentlemen.

[dass]

I had taken a flat in 2009, with a loan from LICHFL at an interest rate of 10.50%. The current interest rate is 11.65% and LICHFL does not have the option to refinance the loan at a lower interest rate, so I have to continue paying higher interest rate till they decide to reduce or shift to another loan provider.
The problem with the second option is that mine is a B Khata property and none of the banks are willing to take over a existing loan. Do any of you know of any banks in Bangalore which would take over an existing loan for a B Khata property?

[KL54]

At the present interest rate scenario, is it advisable to go for a fixed rate loan or a floating rate loan? I trawled the net for interest rate forecasts but couldn't find any logical (reasonable) forecasting.

Economists, please help!

[longhorn]

Originally Posted by KL54

At the present interest rate scenario, is it advisable to go for a fixed rate loan or a floating rate loan? I trawled the net for interest rate forecasts but couldn't find any logical (reasonable) forecasting.

Economists, please help!

I'd say current rates should hold with a -ve outlook which means the possibility of rates rising is less. Rates could be stable with a possibility of reducing in the medium term. Only problem is the continuing slide in the rupee which means fuel prices are going to get jacked up very shortly which could lead to further inflationary tendencies which may get offset if we have a good monsoon this year. In short, its better to go for a floating rate now.

By the way I'm not an economist so you could consult one before taking the final decision.

[WindRide]

Iam planning on closing my home loan account by prepaying the enitre balance amount.
I understand the lender will return the original documents after a few days (weeks?).
Is there a need after that to go to sub-registrar office and remove charge/lien on the mortgage? If i understood this right, doing this will make the no-encumberance certificate of my property clean right? meaning, no loans outstanding on this property.

[Jignesh]

Hello All,

I am in process of taking a Home Loan from Tata Capital & the sanction, technical assessment & legal assessment are done & cleared.

Now I have registered my Agreement with seller & submitted the same to Tata capital.

Before Disbursement, they are now asking for the Mortgage Deed (between me & Tata Capital) to be registered at local sub-registrar. This will be done by paying Rs. 1,000 demand draft & some other charges.

Does anyone know of this new Mortgage deed registration rule?

Thanks,

[ghodlur]

Originally Posted by Jignesh

Before Disbursement, they are now asking for the Mortgage Deed (between me & Tata Capital) to be registered at local sub-registrar. This will be done by paying Rs. 1,000 demand draft & some other charges.

Mortgage deed needs to be registered for sure but need not be done at the sub registrar. It can be done at any nationalised scheduled bank. In other words this registration is also called "franking" which happens at the banks too. No need of demand draft, pay by cash and get the receipt of registration amount paid, this is then attached the loan agreement document.

If this proces is changed, I am not aware.

[amitk26]

Originally Posted by ghodlur

Mortgage deed needs to be registered for sure but need not be done at the sub registrar. It can be done at any nationalised scheduled bank. In other words this registration is also called "franking" which happens at the banks too. No need of demand draft, pay by cash and get the receipt of registration amount paid, this is then attached the loan agreement document.

If this proces is changed, I am not aware.

A little correction ,
Franking of document after payment of stamp duty amount is done at nationalized bank but this is just replacement of physical revenue stamps which were discontinued after Telgi Scam, Mortgage deed or any other deed is always registered at sub-registrar office.
Most of the customers are unaware as they need not physically visit sub registrar office for the same and staff of builder or financial institute takes care of logistics.

[S_U_N]

Originally Posted by shipnil

S_U_N, we did have a mini discussion on this via PMs sometime back. Not sure if you have progressed on this front.

Not progressed much but the search continues.
I have to see one plot (this time it is an NA plot). Of course, the rates are higher than what I can afford and that is where I have to think of a loan.

Now, what I do know is
1. Plot loan is not same as housing loan. So, there is no tax benefit (meaning no savings of Rs. 50000 towards income tax each year).
2. I can probably get 80% of the 'value' of the land I guess.

I understand that I need to submit an architecture's plan to the corporation, get their approval and then go to the bank for the housing loan (actual construction of house).

But this means, that I have to first approach bank to buy the plot, get it in my name, submit architecture's plan, get approval from PMC and then again go to the bank to convert my plot loan to a housing loan and get disbursement as per construction phases.

If I start this process now, I might be able to complete the activity by March and then hopefully claim tax benefits on my own. I cannot have any of this factored in my employer's finance systems since they would ask us to declare everything by January 15th each year.


The total cost of property + construction is around 1 cr and I assume SBI will give me a max of 80 lacs out of this.

[dass]

Originally Posted by WindRide

Iam planning on closing my home loan account by prepaying the enitre balance amount.
I understand the lender will return the original documents after a few days (weeks?).
Is there a need after that to go to sub-registrar office and remove charge/lien on the mortgage? If i understood this right, doing this will make the no-encumberance certificate of my property clean right? meaning, no loans outstanding on this property.

I may be wrong, but I dont think the registered document has it mentioned anywhere that the property is hypothicated to any bank. That is probably the reason why the banks keep the original with them. We don't need to cancel anything on our own. Even the EC does not have it mentioned anywhere i suppose.

[ghodlur]

Originally Posted by WindRide

Iam planning on closing my home loan account by prepaying the enitre balance amount.
I understand the lender will return the original documents after a few days (weeks?).
Is there a need after that to go to sub-registrar office and remove charge/lien on the mortgage? If i understood this right, doing this will make the no-encumberance certificate of my property clean right? meaning, no loans outstanding on this property.

As @dass mentioned, there is no need to visit the sub registrar office after the loan closure. Just ensure that you get the loan closure certificate/letter from the lender and keep a copy of the loan account statement which shows the loan amount as zero. I hope you do have the list of documents submitted to the lender as mortgage in written.