Team-BHP > Shifting gears


Reply
  Search this Thread
224,166 views
Old 7th July 2020, 12:47   #646
BHPian
 
distiller's Avatar
 
Join Date: Sep 2016
Location: Flying around
Posts: 106
Thanked: 96 Times
Re: Help with a home loan!

I am also a existing HDFC customer. Everytime the repo rate moves upwards the company immediately switches me to new rate from the next EMI cycle. If the repo rate moves downwards, I've to approach the company and fill in a form plus pay a conversion fees and then from next EMI cycle the rate of interest is reduced.
Yesterday I logged in my home loan account and under the conversion tab I could see that by paying Rs. 5900/- I have the option to move from existing 8.9% to 7.5%. With this move I can reduced my EMI by keeping the tenure same. For this we had to write a email and the company will contact me to complete the procedure. I had done this before in 2017 if I remember correctly.
I think the only way out of this cheating is to pre-pay as much as possible and that too in initial loan term.
distiller is offline  
Old 7th July 2020, 13:13   #647
BHPian
 
Join Date: Jan 2008
Location: Mumbai
Posts: 180
Thanked: 203 Times
Re: Help with a home loan!

I will be finishing my home loan with ICICI bank soon (Last EMI in Aug). Will appreciate advice from BHPians on what all things I need to take care of while closing the loan account.

Especially in this situation of pandemic and partial lockdowns in Mumbai, I am a bit skeptical how the whole process will turn out.

Last edited by Prafful_Rathod : 7th July 2020 at 13:14.
Prafful_Rathod is offline  
Old 7th July 2020, 14:52   #648
BHPian
 
Join Date: Jul 2008
Location: HYD
Posts: 537
Thanked: 1,176 Times
Re: Help with a home loan!

Quote:
Originally Posted by longhorn View Post
Effectively you will be stuck with the 7.35% rate every time the rate goes down, but they will promptly increase the rates if the repo rate moves up.
Quote:
Originally Posted by Dieselritzer View Post
A very close friend has his loan there and loan rate reductions or increase happen automatically without him having to do anything. This is the same that I have been promised by HDFC folks in writing on email.
HDFC HFL is automatically reducing the rate these days. We dont need to put in a request anymore. we can reduce the spread or margin on our loan by paying a fee but any repo rate reduction will still be automatically applied.

Last edited by Comrade : 7th July 2020 at 15:06.
Comrade is offline   (2) Thanks
Old 14th July 2020, 22:53   #649
BHPian
 
Join Date: Apr 2010
Location: Bengaluru
Posts: 558
Thanked: 516 Times
Re: Help with a home loan!

Hi,

Does banks, especially SBI, give loans for purchase of property in rural areas for salaried applicants?
If yes, details/ pointers pertaining to the same would be highly helpful.

thanks.
vinjosep is offline  
Old 11th August 2020, 19:56   #650
Senior - BHPian
 
SoumenD's Avatar
 
Join Date: Feb 2013
Location: India
Posts: 1,750
Thanked: 6,295 Times
Re: Help with a home loan!

Anybody here on Axis bank HL? My ongoing ROI still shows 8.05%, while their new loan rate shows 7.75% for floating customers. Is this difference normal? Any way I can get my rate to the same level as new customers?

Just saw an ad from ICICI bank for 6.95% ROI for home loan transfers. Folks with experience on transferring home loans, could you please help me understand if transferring would be a good idea?

P.S: My loan(original tenure of 20 years) is 8 years old and 60% paid off till now.

Last edited by SoumenD : 11th August 2020 at 19:59.
SoumenD is offline  
Old 11th August 2020, 23:22   #651
BHPian
 
Join Date: Jul 2008
Location: St Louis, MO
Posts: 169
Thanked: 201 Times
Re: Help with a home loan!

Quote:
Originally Posted by Prafful_Rathod View Post
I will be finishing my home loan with ICICI bank soon (Last EMI in Aug). Will appreciate advice from BHPians on what all things I need to take care of while closing the loan account.

Especially in this situation of pandemic and partial lockdowns in Mumbai, I am a bit skeptical how the whole process will turn out.
Congratulations, time to get into next commitment so you will love your job, boss and company.

If you have checklist of what parent document originals you gave, keep that handy. Call them and ask when and how you will the documents

Get a Lien release letter from the bank and apply for EC to ensure ICICI loan is not longer showing up

If you have any PoA to the bank, get it cancelled
Ananthang is offline   (2) Thanks
Old 11th August 2020, 23:47   #652
Newbie
 
Join Date: Apr 2020
Location: Ahmedabad
Posts: 7
Thanked: 8 Times
Re: Help with a home loan!

Quote:
Originally Posted by SoumenD View Post
Anybody here on Axis bank HL? My ongoing ROI still shows 8.05%, while their new loan rate shows 7.75% for floating customers. Is this difference normal? Any way I can get my rate to the same level as new customers?.
Take a look at the Arrangement Letter for your loan. It will have details on how often your interest rate is reset.

You have already gone through the process for Home Loans. When a bank decides to take over the loan, the new charges will be: processing fees, Title Verification, Valuation and Stamp Duties. Do a back of the envelope calculation to see if it makes sense to switch.
YossarianLives is offline   (1) Thanks
Old 12th August 2020, 01:52   #653
BHPian
 
ventoman's Avatar
 
Join Date: Aug 2010
Location: Blr/London
Posts: 316
Thanked: 180 Times
Re: Help with a home loan!

Quote:
Originally Posted by Ananthang View Post
Congratulations....

If you have any PoA to the bank, get it cancelled
Yep, this is the most important step that most of us tend to forget/ignore. It involves us and bank authority to appear in registrar office and getting it cancelled, which can be a real pain after a year or so.
ventoman is offline  
Old 12th August 2020, 09:16   #654
BHPian
 
Join Date: Jan 2008
Location: Bangalore
Posts: 945
Thanked: 1,521 Times
Re: Help with a home loan!

Quote:
Originally Posted by SoumenD View Post
Anybody here on Axis bank HL? My ongoing ROI still shows 8.05%, while their new loan rate shows 7.75% for floating customers. Is this difference normal? Any way I can get my rate to the same level as new customers?

Just saw an ad from ICICI bank for 6.95% ROI for home loan transfers. Folks with experience on transferring home loans, could you please help me understand if transferring would be a good idea?

P.S: My loan(original tenure of 20 years) is 8 years old and 60% paid off till now.
First, be aware of your credit score. 8.05 and 7.75 are both very high in today's regime, esp if you have a good credit score. Switching banks also has costs. So if I were you, I'd first invest effort in writing an email to your existing bank and negotiate with then to reduce the ROI so as to be competitive. In that email share the URL link of a competing bank that has lower rates published on their website for your kind of credit score, and politely tell them that you would switch banks if they don't oblige.

The attractiveness of switching bank is esp worse if you're so far into your tenure. Why? Bcoz the new bank would put you in a regime where the amortization is such that you start off with higher interest component in the EMI (even if that EMI is reduced). This plays against you if you ever want to switch banks again in future, or wish to prepay in full.

I use the below app, it's really useful for financial calculation like EMI etc, as well as for amortization schedule (click Statistics button in the app):

FINANCIAL CALCULATOR:
https://play.google.com/store/apps/d....emi.calculate
vharihar is offline   (1) Thanks
Old 31st August 2020, 19:44   #655
BHPian
 
Join Date: Sep 2008
Location: New Delhi
Posts: 46
Thanked: 2 Times
Re: Help with a home loan!

Hello, I need some help with Income Tax declaration wrt Home Loans.

So i recently purchased a Ready to Move in home in Bangalore. Few points regarding the same:

-- Home Loan is through HDFC
-- Joint Loan with my wife
-- 95% of the cost of the apartment is paid (Self + Loan)
-- Rest 5% by HDFC will be paid once registration is done
-- Registration is delayed due to Covid
-- I have taken partial possession to have the interior work completed

Till now, 1 Pre EMI (July) and 1 EMI (Aug) has been deducted. I can get the loan statement through HDFC online portal.

Now my question is, can myself and my wife declare this in our respective office IT declarations to start taking advantage of the same (on interest only) along with the HRA? Only I am claiming HRA as of now.
shwetanshu is offline  
Old 14th December 2020, 11:39   #656
BHPian
 
Join Date: Jul 2019
Location: PUNE
Posts: 146
Thanked: 68 Times
Re: Help with a home loan!

Dear BHPians,

I have a SBI maxgain loan, currently at 8.3%. May be it is due to be reduced to 7.4% next year. My questions as below :

1. Good idea to switch over to repo linked rate instead of the standard mclr lending rates? Given the macro economic conditions prevailing in the country and the quarterly resetting cycle, I am inclined to go with the former, even if it includes paying a nominal fee upfront.

2. Is there any upper limit on the number of times we can prepay, in case of maxgain? I heard that it can be done only thrice during the loan's tenure, not beyond.

Thanks in advance.

Last edited by spr1ngleo : 14th December 2020 at 11:49. Reason: Typo correction
spr1ngleo is offline  
Old 10th March 2021, 19:41   #657
BHPian
 
Join Date: Feb 2020
Location: Bangalore
Posts: 277
Thanked: 1,757 Times
Re: Help with a home loan!

Dear BHPians, lured by lower interest rates I applied for home loan from SBI on Jan 25th and submitted documents on Feb 1st. After taking their sweet time, they have now come to the stage where they can release the funds next week and now they are putting a condition that they will not hand over the DD until I register the home and submit the original documents.
The seller is not agreeing to this condition and rightly so because it is risky for him. As per the bank official, he will provide me with the DD number and a photocopy and this is the standard process followed everywhere but all my friends and relatives are saying otherwise.
What is the correct procedure?
Thanks
nagr22 is offline  
Old 10th March 2021, 20:03   #658
Team-BHP Support
 
Turbanator's Avatar
 
Join Date: Mar 2011
Location: Gurgaon
Posts: 6,681
Thanked: 28,121 Times
Re: Help with a home loan!

Quote:
Originally Posted by nagr22 View Post
What is the correct procedure?
Looks as misunderstanding somewhere, usually registry is done at a Government office and Draft is handed over to seller by representative of the Bank. There is a slip that officials give for collection of documents, this slip is taken by that representative and he collects the documents whenever ready in next day or so. At some places, you can formally hypothecate in the registry documents as well.

So unless there are any specific reasons, draft has to be given to seller by the bank.
Turbanator is online now  
Old 14th March 2021, 14:56   #659
BHPian
 
Join Date: Feb 2020
Location: Bangalore
Posts: 277
Thanked: 1,757 Times
Re: Help with a home loan!

Quote:
Originally Posted by Turbanator View Post

So unless there are any specific reasons, draft has to be given to seller by the bank.
Thanks for the reply. It was not misunderstanding but rather the SBI executive was lying to me about it thinking I will bite. I came to know he is on leave from last Wednesday since he had an opportunity to take a long leave on account of Shivaratri, 2nd Saturday followed by 2 days of nationwide bank strike on Monday and Tuesday.
So instead of telling me that the loan sanction will be delayed because of this (which I would have been totally fine!), he lied to me about the DD process and the innocent me told that to my seller who now thinks I am trying to cheat him by getting the house transferred to my name with a mere photocopy of the Demand Draft

I got to know about his leave plans only after I visited the branch personally and even there the manager was not ready to delegate the work to someone else and instead kept insisting (lying!) that there is some legal issue with that property and thats why it will be delayed by 1 more week for loan sanction. He had no answer for what the legal issue was and when I insisted he rudely told me to go to any other bank for loan processing and IT WILL be delayed if I need a loan from SBI.
That was the last straw for us after a 2 month ordeal with them and me and my wife visited a nearby ICICI bank where we hold a salary account. Explained the situation and the manager has personally taken responsibility to complete the entire loan sanction process within 3-7 business days and true to her word, she immediately generated the provisional loan approval letter matching the same interest rate offered by SBI and initiated legal and valuation process within the next 30 mins! She has assured us that if the legal report is ready by Tuesday evening, she will give me the DD for the loan before the SBI employees come to work on Wednesday! The only reason why she has asked 3-7 days is to account for any missing document request from the legal team. Otherwise, their targeted turn around time for home loan sanction is 3 days for salary account holders. She didn't even take any income proof from me because it's all in the banks system and all they need is a copy of sale agreement!

On Friday I told the SBI manager about my decision to go with icici and after that his executive called me apologizing profusely and promised to delegate the work to someone else as he is on leave till next Saturday. I would have agreed to it had he done that on the morning of the same day but now I was in no mood for it! He claimed I would have to pay 10000+GST as cancellation charges to SBI and I said I am fine with it!

I am very impressed by the attitude of the icici staff who seem to work at the speed of a bullet train when SBI is still running like a bullock cart with broken wheels and no bull! I sincerely wish the government privatises these nationalized banks so that such lazy lying staff can be weeded out!
nagr22 is offline   (1) Thanks
Old 14th March 2021, 16:18   #660
BHPian
 
Join Date: Dec 2016
Location: BANGALORE
Posts: 296
Thanked: 1,265 Times
Re: Help with a home loan!

Quote:
Originally Posted by nagr22 View Post
Thanks for the reply. It was not misunderstanding but rather the SBI executive was lying to me about it thinking I will bite.
It has been an observed that these procedures keep changing with different states, RACPCs etc. I have good experience with SBI in two loans taken within a period of 3 months. We registered both properties in a span of 12 days.

First one was in Bangalore, applicant was my wife and the loan procedure was managed by an agent - just the collection of documents and submitting to the bank. We were invited to the RACPC at a specified time. Documents verified by an officer and sanctioning letter written but handed over later once we handed over the proof of Downpayment to the builder.

A DD was prepared a day before the registration a copy was handed over to us. Registration happened with the copy of DD. Builder told us coolly that if we do not hand over the originial DD we have your downpayment as security and registration would stand cancelled as DD was not realized by them.We collected the original documents next day, submitted it to the bank and received the original DD.

Second one was in chennai, RACPC made us visit multiple times for various documents but a representative of the bank came to registration office personally, verified the documentation and handed over the DD personally to the builder. The registration documents were collected by the bank officers and a copy was given to us later.

Both the places there was a huge difference in the attitude and procedures of the bank officials. Bangalore they were very professional and rigid. In chennai they were not well organized but more communicative.

We availed both the loans as MAXGAIN with ROI linked to base rate. Chennai loan was wrongly disbursed as a regular home loan and on repeated representation reissued as a MAXGAIN. Was never successful in changing the linking to base rate but it is now at 7.4%. Bangalore loan was much smoother with us changing the EMI mandate to different bank and resetting the link from Base rate to MCLR to repo rate at present. It stands at 7.4% at present.

Things move slower and smoother if remain less demanding by time factor with SBI. We never hurried them. First loan took us 23 days end to end and second one 14 days end to end.
aadya is offline   (1) Thanks
Reply

Most Viewed
Thread Tools Search this Thread
Search this Thread:

Advanced Search

Copyright ©2000 - 2024, Team-BHP.com
Proudly powered by E2E Networks