[Engine_Roars]

Hi guys, I am thinking of taking a joint home loan of around 50 lacs. The Co applicant would me wife. Tenure would be of 25 years. Need your help on the below pointers.

1. Is joint loan a good idea? Any cons?
2. I am thinking of HDFC bank for the loan since it has both of our salary accounts. Should I consider other banks too? Would it make a big difference?
3. After introduction OF RERA, should I be still worried about legality of the project? It is RERA registered and the builder is Paranjpe.

Any help would be much appreciated.

[fine69]

Originally Posted by Engine_Roars

1. Is joint loan a good idea? Any cons?

2. I am thinking of HDFC bank for the loan since it has both of our salary accounts. Should I consider other banks too? Would it make a big difference?

3. After introduction OF RERA, should I be still worried about legality of the project? It is RERA registered and the builder is Paranjpe.

1. Extra paperwork but a female applicant means some relaxation in interest. Loan eligibility also goes up.

2. Interest rate shouldn't be the only factor when taking a loan.

Imagine you take a loan of 1000 rupees and HDFC asks you to pay 100 rupees every month while SBI wants 110 rupees. However, HDFC deducts 20 rupees from Principal while SBI deducts 30. Do the math.

3. RERA only means that the legal process would be a little easier. It doesn't mean that builders WILL deliver on time. Avoid an under construction property if you can. I would personally NEVER recommend anybody buying an under construction property.

However, if you must buy one, check for builder reviews on the net but do the required footwork by visiting builder's previous projects, how were they delivered, the quality of those projects etc.

[sansvk]

Originally Posted by Engine_Roars

2. I am thinking of HDFC bank for the loan since it has both of our salary accounts. Should I consider other banks too? Would it make a big difference?

I dont have any experience with home loans, but did take a HDFC car loan for which I repent.
At some point of time you may want to prepay, with that scenario do check the pre payment clauses and fee of HDFC vs others.
Do not rush into a loan, do shop around and take an informed decision.

[sanjayk]

Originally Posted by Engine_Roars

1. Is joint loan a good idea? Any cons?

Tax benefit for a Housing Loan Interest is given only on the first house. As a joint holder you might miss out on that. Hoping this tax benefit remains.

Originally Posted by Engine_Roars

2. I am thinking of HDFC bank for the loan since it has both of our salary accounts. Should I consider other banks too? Would it make a big difference?

Home loan is not offered by HDFC Bank but HDFC Ltd., I had been a customer in the past, it is my opinion that HDFC is very transparent in its approach to the customer. Compare the interest rates before you decide.

[neofromcapone]

He biggest mistake one can do is ONLY compare the interest rate.
You don't buy a car based on the CC of the engine alone, right?

Please compare
Pre-payment clauses and fees.
If you can pay over and above the EMI (anything extra has to be applied to the principal amount, hence will speed up the repayment schedule and lower the interest component)
Fees if you pay anything extra.
Pre payment penalty.
And most importantly is it a fixed or floating rate.
Floating rates are lower for like 5-10% of the tenure of the loan.
Then fluctuates on the needs of the lending institutions.

Use EMI calculator
https://emicalculator.net/
And check the total paid upon completion of tenure.
Do also compare processing and other fees till your disbursement happens.

[vinit.merchant]

Originally Posted by Engine_Roars

2. I am thinking of HDFC bank for the loan since it has both of our salary accounts. Should I consider other banks too? Would it make a big difference?

Any help would be much appreciated.

Originally Posted by sanjayk

Home loan is not offered by HDFC Bank but HDFC Ltd., I had been a customer in the past, it is my opinion that HDFC is very transparent in its approach to the customer. Compare the interest rates before you decide.

Beware. I have been warning people time and again on this.
Home loan is given by HDFC which is an NBFC. NBFC are not mandated to tie the interest rates with the RBI rates. So initially when you compare the interest rates, you will always find NBFC's rates to be the lowest. But this can and will increase in future + if RBI reduces the rate, NBFC's will not.
I have a friend who has a home loan in HDFC and he is repenting big time. Not only do they NOT revise the rates downwards, but when you approach them to transfer your loan to a different bank, the charges will stop you from doing that.
My friend approached them for a transfer of loan but on knowing the charges involved, he ended up paying them 15k for revising the rates downward.


Please, always avoid NBFC's for your home loans. You would be better off with some private banks like ICICI and Citibank.


Quoting my old posts from this very thread

Originally Posted by vinit.merchant

Bajaj Finance is an NBFC and I repeat, avoid loans from NBFC's as they are not mandated to link the interest rates with the MCLR rate that RBI updates time and again. Over a period of time, your interest rate will always be significantly higher than the MCLR.

Prefer banking institutions for the home loan.

[sanjayk]

Originally Posted by vinit.merchant

Beware. I have been warning people time and again on this.
Home loan is given by HDFC which is an NBFC. NBFC are not mandated to tie the interest rates with the RBI rates. So initially when you compare the interest rates, you will always find NBFC's rates to be the lowest.

Prime Lending Rate (PLR) - Spread % = Interest rate offered.
HDFC, from whom i had taken a loan in the past, had this quarterly revision of interest rates, which can be an advantage/disadvantage as per the rise/fall of interest rate. The HDFC portal, gave me what my interest rate would be in next quarter. It in fact had the rate from start of loan till date.

Originally Posted by vinit.merchant

But this can and will increase in future + if RBI reduces the rate, NBFC's will not. I have a friend who has a home loan in HDFC and he is repenting big time. Not only do they NOT revise the rates downwards, but when you approach them to transfer your loan to a different bank, the charges will stop you from doing that.

No lender would let go of a borrower . The more tenured the loan, the more they will make money out of him/her. However there is no charge if you wish to pre-pay your loan with your own funds. I did that with by withdrawing money from my Provident Fund account.

Originally Posted by vinit.merchant

My friend approached them for a transfer of loan but on knowing the charges involved, he ended up paying them 15k for revising the rates downward.

This is spread adjustment. Pay a % of the principal outstanding to reduce your interest rate. This is helpful when your interest is at the maximum and no sight of reducing in the near future. (Applies to Banks as well). Loan transfer is a marketing ploy, never benefits the borrower.

Originally Posted by vinit.merchant

Please, always avoid NBFC's for your home loans. You would be better off with some private banks like ICICI and Citibank.

Choose your lender wisely, upfront charges, pre-closure conditions, protection from interest rate hikes, credibility of the organization/group could be some of the factors.

It is not advisable to have a long tenured home loan, at the end of which your asset may not fetch what you had paid for.

Note: I am not employed with any of the lenders, speaking from my experience.

[Engine_Roars]

Originally Posted by fine69

1. Extra paperwork but a female applicant means some relaxation in interest. Loan eligibility also goes up.

However, if you must buy one, check for builder reviews on the net but do the required footwork by visiting builder's previous projects, how were they delivered, the quality of those projects etc.

Originally Posted by sansvk

I dont have any experience with home loans, but did take a HDFC car loan for which I repent.
Do not rush into a loan, do shop around and take an informed decision.

Originally Posted by sanjayk

Tax benefit for a Housing Loan Interest is given only on the first house. As a joint holder you might miss out on that. Hoping this tax benefit remains.

Home loan is not offered by HDFC Bank but HDFC Ltd., I had been a customer in the past, it is my opinion that HDFC is very transparent in its approach to the customer. Compare the interest rates before you decide.

Originally Posted by neofromcapone

He biggest mistake one can do is ONLY compare the interest rate.
You don't buy a car based on the CC of the engine alone, right?

Please compare
Pre-payment clauses and fees.

Use EMI calculator
https://emicalculator.net/
And check the total paid upon completion of tenure.
Do also compare processing and other fees till your disbursement happens.

Originally Posted by vinit.merchant

Beware. I have been warning people time and again on this.
Home loan is given by HDFC which is an NBFC. NBFC are not mandated to tie the interest rates with the RBI rates. So initially when you compare the interest rates, you will always find NBFC's rates to be the lowest.

Thank you for all your valuable inputs. Much appreciated. This is definitely going to help.

[dailydriver]

A friend has availed plot purchase loan from LICHFL. The rate of interest is on par with SBI. The overall process was stress free, though it took almost a month from applying to disbursal. For an amount of ₹5,00,000/-, he incurred approximately ₹10,000/- as processing, legal, stamp duty and other charges.

Anyone else with experience of getting housing/plot purchase loan from LICHFL? Kindly share.

[rajeev k]

Originally Posted by sanjayk

Tax benefit for a Housing Loan Interest is given only on the first house. As a joint holder you might miss out on that. Hoping this tax benefit remains.

Tax benefit is applicable for two houses. Co applicant can have benefits separately, if the subject property is not co owned.

[sanjayk]

Originally Posted by rajeev k

Tax benefit is applicable for two houses. Co applicant can have benefits separately, if the subject property is not co owned.

Co-borrower can not claim tax benefits if the property is not co-owned.

[aadya]

Originally Posted by Engine_Roars

Hi guys, I am thinking of taking a joint home loan of around 50 lacs. The Co applicant would me wife. Tenure would be of 25 years. Need your help on the below pointers.

1. Is joint loan a good idea? Any cons?
2. I am thinking of HDFC bank for the loan since it has both of our salary accounts. Should I consider other banks too? Would it make a big difference?
3. After introduction OF RERA, should I be still worried about legality of the project? It is RERA registered and the builder is Paranjpe.

Any help would be much appreciated.

No second opinion. SBI maxgain loan should be the first option.Period. In case any issue with the documentation then think about other banks.

[abhi3284]

Guys, i had applied for SBI Maxgain HL for 75L and it should be done soon.
I am selling off my current Home, for which i have found a Buyer and the Transfer should be done in a month or so. Mostly, my EMI's might start from December and i need some opinions on a couple of scenarios.

1) If i get say X Amount from the Buyer, do i pay it to the Builder and take a Maxgain Loan of (75L - X)?

2) Do i take a Maxgain Loan of 75L and put the X Amount in the Maxgain OD Account and transfer the EMI Amount each month for Deduction.

3) If my Maxgain EMI's start before i receive the X Payment from my Flat Buyer, whose chances are high, do i do a part-payment of the X Amount and reduce the Tenure?

Which scenario will be most sensible and beneficial for me?

Thanks.

[abhi3284]

Suggestions, anyone?

[VKS]

Best wishes for your new home.

I would ask myself 2 questions, If the answer is no, I will go for option 3)

1) Do I have a tax advantage if I take the complete loan of 75 Lacs.

2) Do I need the money (X) above immediately or in foreseeable future.