[diyguy]

Originally Posted by JD1

Any August month offers from banks offering processing fee waiver for home loan transfer?

Yes there is with HDFC but you may have to move fast as not sure how long more it is gonna stay. I did mine about 2 weeks back.

[JD1]

Originally Posted by diyguy

Yes there is with HDFC but you may have to move fast as not sure how long more it is gonna stay. I did mine about 2 weeks back.

Thank You. Will check it out.

[saurabh2711]

Hi All,

Sincere apologies, if this has been answered for current financial year. Couldn't find anything hence posting the query.

I have a home loan (Maxgain) of 34.5L from SBI for my flat.
Current applicable rate on my account is 10.45%.
Current market rate is 9.7. (My wife is the main applicant).

Looking at the current market situations & hopefull rate cuts later this year:
Is it advisable to switch from Fixed to floating rate of interest by paying 0.56% of drawing power (Rs. 19K) approximately. This will take place (if advised) in September.

Further to scenario: My car loan is also finished this month, so will be in position to pre-pay or deposit some amount in Maxgain- Transaction account to save some interest.

Please suggest.

Regards,
Saurabh.

[diyguy]

I just switched from LIC (11.5%) to HDFC 9.9% plot loan. Have not seen a more unprofessional organization than LIC. They have branches in most places, but insist the customer has to visit the original branch where loan was provided. I have a branch 2 mins away from home in Anna Nagar but they wanted me to visit Saidapet (about 15-18Km) away to apply for List of Documents. I managed to convince the annanagar folks to accept my form.
I received the LOD in about 2 weeks. There was a mistake in that. They mentioned some additional document that was never part of my originals. This inspite of charging an inspection fee of Rs. 570 for the LOD. I had to go to the Saidapet office to get this manually hand corrected by the manager there. She asked us to come back on the following monday as the guy who made this mistake was on vacation. So went back, they rechecked and this lady then provided me the hand corrected LOD. On reaching home found that she messed the hand corrected one too and gave me two print outs for the same loan, when I had 2 loans with them. Again pressure to get another one from her and I refused to go back. Asked her to get someone in the anna nagar branch to sign and they obliged. Total useless folks.
In parallel HDFC finished all the processes for loan sanction on their end. I had to get the original EC from online registrar site. This was another ordeal and took me like 4 weeks to get it. However I got to know the EC guys responsible for generation and delivery and so if anyone needs their contacts, PM me for this. If you call and speak to them it will expedite the process.

On the day I invoked the loan disbursal with HDFC and collected the cheques for balance transfer to LIC, I went to LIC to handover the cheques and close the loan there. They guys wanted proof from me that the EMI was deducted for that month. It was actually the same day that I went there. So logged into mobile banking and showed them, they did not accept this. I had to download a statement on the phone and emailed one of the helpful ladies in that office, who printed it for me. I then showed this to the "May I help You" person who has a demeanor to actually repel customers away from disturbing his slumber. He looked at the printout and processed my dues.
He suddenly comes up with unknown dues, says I did not pay some fee 4 years back of Rs. 1500 per loan, and a document retrieval feel of 2800 per loan. So after screwing me all these years at an interest rate > 11%, I get further screwed with shady charges. Paid up all of these and got a receipt.
Was sent to the document section where a grumpy man took my slips and stamped Oct 5th as document retrieval date and gruffly told me to look at the checklist and not ask him any questions. Total idiotic and unprofessional experience with LIC. I still kick myself for even taking up their loan in the first place. I am finally rid of them, except for one last transaction of collecting my orignal documents on Oct 5th and then handing them over to HDFC.

Am posting my experience so that it helps others here.

[nowwhat?]

Originally Posted by saurabh2711

Hi All,

I have a home loan (Maxgain) of 34.5L from SBI for my flat.
Current applicable rate on my account is 10.45%.
Current market rate is 9.7. (My wife is the main applicant).

Looking at the current market situations & hopefull rate cuts later this year:
Is it advisable to switch from Fixed to floating rate of interest by paying 0.56% of drawing power (Rs. 19K) approximately. This will take place (if advised) in September.

My 2 paisa and please take this is a subjective opinion.

Real interest rates in India are too high and right now itself there is scope of a reduction of 1.25% to 1.75%. For more info, see http://www.livemint.com/Money/xd9H2w...ates-rise.html

Of course, a lot will depend on the monsoon deficit and we will get the real picture of food inflation at harvest which is in Q3 (Oct-Dec 2015). Based on how it's been in the past, our economists have no clue about agricultural production until the data actually shows up. Then let's not forget the fact that we have a doom-and-gloom guy heading RBI. But still I think, interest rates will move down by Q2/Q3 2016.

In this scenario and ever since banks introduced a periodic reset on fixed rate loans, only floating rate makes sense. The periodic reset is a dampener -- It wasn't always like that, I once took a 10-year fixed home loan at 7.5% and finished repaying it only last year.

I would still stick with SBI as their interest rates are competitive even though their service is pretty much non-existent.

[saurabh2711]

Originally Posted by nowwhat?

In this scenario and ever since banks introduced a periodic reset on fixed rate loans, only floating rate makes sense.

Thanks nowwhat?.

I will stick to SBI in any case. My main concern was switch to floating or Stay as is? WIll see the final cost involved through various scenarios.

There was an ad in Time of India yesterday of ASOCHAM. Read that there is another rate cut in the horizon, this month or lated by Next monthend.

Regards,
Saurabh.

[hangover]

Any bank will give home loans. Even dubious builders are referred to as approved.

Properties with no occupancy certificate or with illegal floors too get loans.

Even if the local municipality body seizes it or government demolishes compound for road widening your liability stays. The loan has to be repaid. That's why they probe deep into your finances. That's the reason for making spouse co-borrower.

Your loan agreement says in various ways that you'll pay them back. From then on property as a collateral is unimportant.

Don't ever trust a banks lawyers to tell you that the property has good paperwork. They only see the photocopies and tell you if the document is valid. That's all. Always get an independent lawyer and pay him 10-20k to thoroughly check a property's papers.

Typically they also sell you a home owners insurance to cover that loan when you get the loan. This is obviously an extra premium. It's not at all mandatory but they'll make it sound official.

The agent won't follow up next year as he has already got his commission.

Also note, having an EMI is like a huge stone on your head. You can't think of leaving your job and running off to Thailand for a few months.

[vinukm]

I currently have a home loan with India Overseas Bank. I am planning to swicth it to Bajaj Finserv and get some topup on that. Would like to get a feedback if some one has availed homeloan from bajaj.. please let me know.

[wanderer4x4]

Originally Posted by vinukm

I currently have a home loan with India Overseas Bank. I am planning to swicth it to Bajaj Finserv and get some topup on that. Would like to get a feedback if some one has availed homeloan from bajaj.. please let me know.

If the rate difference is not huge, I'd suggest you stay put with a bank. The NBFCs play around with the rates too much later on without giving much benefit to the existing customers. Banks do not have that liberty as they need to set the rate basis the Base Rate

[nowwhat?]

Originally Posted by vinukm

I currently have a home loan with India Overseas Bank. I am planning to swicth it to Bajaj Finserv and get some topup on that. Would like to get a feedback if some one has availed homeloan from bajaj.. please let me know.

Always stick to a bank. Home loans are long term and NBFCs are not fully under the control of RBI, i.e. they do not have to follow the same base rate computations that banks follow.

Originally Posted by hangover

Also note, having an EMI is like a huge stone on your head. You can't think of leaving your job and running off to Thailand for a few months.

Surprising that no one commented, but all that you have mentioned is factually true but surprisingly very few understand.

I would add the following article I read recently -> http://freefincal.com/five-reasons-w...n-real-estate/

[Pancham]

Hi guys !

I need some help with a home loan I am going to apply for.

I have received the letter for payment of 1st installment from the builder and I have to look for a home loan right away as the date of payment is 3 November.

Can you guys give me a few pointers as to how to go about with the banks and what all things I have to keep in mind before taking the loan. I am 26 and a complete newbie. I dont want to regret the rates and EMIs few years down the line because I failed to read through or understand hidden clauses in the T & C. My preferred bank is UCO.

Thanks.

[diyguy]

Originally Posted by Pancham

I need some help with a home loan I am going to apply.. I am 26 and a complete newbie.

Good for you and good luck! The best thing would be to compare interest rates over past few years from a friend or colleague. Ask the loan officer if they have an interest rate chart of theirs for the past 5 years.
I was with LIC since 2010 and never bothered to check. Since about 2011 till now the interest has been above 11% always. In the same period my friend took from HDFC and I checked his interest rate over this duration and he had crossed 11 only for one quarter and he has always been below in the same period that I was paying 11.5. I have since switched to HDFC and my first EMI is coming up tomorrow.
It is also important to check the online portal. LIC portal sucks and has very little information while the HDFC one is tremendous and has all information on it.
I would suggest you go with SBI if you can withstand the initial hassle of documentation and runaround. Else any nationalized banking institution is good and HDFC though being a NBFC is still good. I have a priority account with Axis Bank and they were unable to show the agility of HDFC or give me the interest rate that I was getting from HDFC...
Finally read this thread and there are many tips and pitfalls listed here.

[hangover]

When I was scouting around for a home loan, I had done lot of research on all this. I've attached a couple of excels which I think will help you. One is a list of papers for salaried and another is for self-employed individuals.

Its quite extensive but its better to prepare oneself with all the documents before approaching anybody.

Regarding the property papers itself - you must get an independent lawyer to verify the documents. Bank will not help you in anyway to establish authenticity of a property. They only verify if the document provided is genuine or not. I hope you understand the difference. It will cost up to 5 to 10k depending on your city. But its worth it rather than being cheated.

Whether you believe in Vaastu or not is irrelevant. The next buyer will want to check if its compliant. So better make sure in the first instance itself.

Important thing is to follow the quarterly rate revisions. Banks are tardy when it comes to a downward re-adjustment even if you take a floating rate. So you need to remind them.

After a few years they will come up with new offers for new borrowers. This is usually lower than yours. The Bank will take a small fee about 3-5 k and reset your interest rate to the low rate. This is somewhat different from the RBI repo readjust. I don't know how. But it is.

[hangover]

Originally Posted by nowwhat?

I would add the following article I read recently -> http://freefincal.com/five-reasons-w...n-real-estate/

Interesting article. Though I wish I had read it 10 years ago. Anyway I realized my folly and went all out to close the loan. I paid double EMI and finally closed it last year. It was a bit difficult to stay parsimonious. But I feel its the best thing I have done.

It's the same case with car loans. I always buy a new car with full cash (if I have) or pick up a 2nd hand vehicle with cash.

And I don't have a credit card. So, if I have money I may enjoy and party. If I don't, then home made rice and daal is good enough for me.

[Pancham]

Originally Posted by diyguy

Good for you and good luck! The best thing would be to compare interest rates over past few years from a friend or colleague. Ask the loan officer if they have an interest rate chart of theirs for the past 5 years.
I was with LIC since 2010 and never bothered to check. Since about 2011 till now the interest has been above 11% always. In the same period my friend took from HDFC and I checked his interest rate over this duration and he had crossed 11 only for one quarter and he has always been below in the same period that I was paying 11.5. I have since switched to HDFC and my first EMI is coming up tomorrow.
It is also important to check the online portal. LIC portal sucks and has very little information while the HDFC one is tremendous and has all information on it.
I would suggest you go with SBI if you can withstand the initial hassle of documentation and runaround. Else any nationalized banking institution is good and HDFC though being a NBFC is still good. I have a priority account with Axis Bank and they were unable to show the agility of HDFC or give me the interest rate that I was getting from HDFC...
Finally read this thread and there are many tips and pitfalls listed here.

Thanks a lot diyguy. At present I am looking at UCO. A friend of mine is taking a loan from SBI @ 9.75%. I checked online for UCO and came up with rates floating around 9.90%.

Aslo considering the flcutuations in the rates should I go for floating rate of interest?

Originally Posted by hangover

When I was scouting around for a home loan, I had done lot of research on all this. I've attached a couple of excels which I think will help you. One is a list of papers for salaried and another is for self-employed individuals.

Its quite extensive but its better to prepare oneself with all the documents before approaching anybody.

Regarding the property papers itself - you must get an independent lawyer to verify the documents. Bank will not help you in anyway to establish authenticity of a property. They only verify if the document provided is genuine or not. I hope you understand the difference. It will cost up to 5 to 10k depending on your city. But its worth it rather than being cheated.

Whether you believe in Vaastu or not is irrelevant. The next buyer will want to check if its compliant. So better make sure in the first instance itself.

Important thing is to follow the quarterly rate revisions. Banks are tardy when it comes to a downward re-adjustment even if you take a floating rate. So you need to remind them.

After a few years they will come up with new offers for new borrowers. This is usually lower than yours. The Bank will take a small fee about 3-5 k and reset your interest rate to the low rate. This is somewhat different from the RBI repo readjust. I don't know how. But it is.

Thanks hangover. I am a little confused here. Regarding the property documents, I will be receiving them at the time getting possession right? If yes, then thats a good 2 years away.
P.S: Dint think about Vaastu : :/