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In India, financial institutions offer different types of home loans to suit the specific needs of customers. A resale flat is more affordable due to factors such as depreciation, age of property, etc. and is the most cost-efficient choice. A resale home was owned previously and thus has all the preferences of the previous occupant. Its sense of character and the features it showcases are building blocks for you to then make into your own as the new buyer. Surrounded by mature trees and in an established neighborhood, the resale home has a lot to offer to the hands-on individual.
The users should exercise due caution and/or seek independent advicebefore they make any decision or take any action on the basis of such information or other contents. PropTiger.com shall not be liable in any manner for any losses, injury or damage suffered by such person as a result of anyone applying the information in these articles or making any investment decision on the basis of such information , or otherwise. The users should exercise due caution and/or seek independent advice before they make any decision or take any action on the basis of such information or other contents. Also required is an assessment bill to the society from the local civic body, a copy of the property card and a receipt for the payment of the registration fee. All the documents that are required in the primary sale of property are also required in the resale of the property.
Existing Customer?
The interest rate for the HDB loan is pegged to the current CPF OA interest rate + 0.1%. Hence, as the current CPF interest rate is 2.5%, it makes the effective rate for a HDB loan 2.6%. This interest rate has also largely remained stable vis a vis the more variable interest rates from the bank. Bank interest rates have largely hovered in the 1% – 1.3% range last year. Depending on the market conditions, bank loan rates are usually more variable.
This is why investing in a property which is up to 20 years old is a wise proposition. While the home you sell will no longer be new, a five-year-old home will often be more desirable — given all the features above — than a 25-year-old home at resale. With a new home, by comparison, you can often participate in the design of interior spaces with the builder prior to actual construction. In addition, many new homes come with the sophisticated wiring that’s needed for high-speed electronics and communication equipment, entertainment centers, and security systems. If you care about “green” — whether that means the money you spend on energy bills every month or your concern about the environment — a newly constructed home is virtually always the better option. Homes built today regularly meet or exceed Energy Star and WaterSense standards, which are national code standards for energy efficiency that are far tougher than just a few years back.
What happens if you cannot repay the loan?
You may find a limited number of 4-room flats measuring around 103 to 105 sq. A flat’s location is also crucial in determining everyday conditions. While one located near the MRT station and the central area could be great, some may prefer one that comes with a quieter environment. Read on as this post explains further this increase, its implications to buyers, and everything in between. Property analysts attribute this increase to buyers’ growing demand and limited supply.
Unlike under-construction properties, the tenure could also be shorter. For HDB loans, if the borrower suddenly has a large sum of funds and wishes to pay off the mortgage loan, they can pay off however much they want without incurring any penalty. But for a bank loan, there is usually a penalty fee if the borrower decides to make early repayments or do a re-financing within the lock-in period.
What are the factors that determine home loan eligibility?
The Borrower will be required to submit such documents that HDFC may deem fit & proper to ascertain the source of funds at the time of prepayment of the loan. Check your loan eligibility before starting your home loan application. However there is no conflict on these services and commissions if any payable are in accordance of the extant regulations.
As a digital marketplace with an exhaustive range of property listings, we know it is easy to get lost. At PropTiger.com, we guide home buyers right from the start of their home search to the very end. Browse through more than 121,000 verified real estate properties with accurate lowdown on amenities, neighborhoods and cities, and genuine pictures. Buying a home is an important investment - turn it into your safest, best deal at PropTiger.com.
Before you purchase a resale flat it is very important to check whether the seller is the true owner of the property or not. In order to confirm the ownership of the seller, you should ask for a clear ownership history in case of properties that have been sold and purchased multiple times. The authenticity of the documents can be established by the administrative officer who has registered the property. No Objection Certificate - Don’t make any payment towards the resale flat before checking the No Objection Certificates from the competent authorities. NOCs are given out by different establishments such as gas, water board, electricity, safety, sanitation, etc.
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Or you may be a do-it-yourself aficionado and relish the opportunity to take an old house and transform it, even if that takes considerable time and money. Lenders evaluate the existing liabilities such as personal loans, credit card bills, car loans, etc., to ensure that you have the financial capacity to repay the home loan. If you have no liabilities, you may get your loan approved without any hassles.
The encumbrance certificate certifies that there are no dues on the property and that the title is marketable and clear. The encumbrance certificate reflects all the transactions related to the property. Banks ask for the encumbrance certificate when the property is being sold, in order to know the details of the property transactions till date. Makaan IQ lists the documents you need while applying for a loan to buy a resale home. If you want to save yourself from paying Pre-Equated Monthly Instalments (Pre-EMIs) and buy a home that you can immediately move into, then you should apply for Home Loan for a Resale Property.
It is also required during the transfer of ownership from one individual to another during the sale/transfer of the property. Hence, you must get your name mutated in the revenue record within 6 months of the purchase. An innovative financial institution may offer a more suitable loan package that suits your needs. Once you have identified the property that you want to buy, applied for Home Loan and your Home Loan is sanctioned, you will get an offer letter which you need to sign and submit back to your bank for the bank’s records. Following are important process or steps involved in the disbursement of Home Loan.
However, it’s important to note that sometimes new homes don’t have accurate property tax estimates since the estimate might have been completed before the home was fully built. Although it may seem like a good thing that you can borrow more funds from a HDB loan, getting a bigger loan could mean you end up paying more interest in total. Borrowing less from a bank loan could also mean saving more in the long run.
Important factors to consider when applying for a home loan
This amount is paid during the period till the full disbursement of the loan. Your actual loan tenure — and EMI payments — begins once the Pre-EMI phase is over i.e. post the house loan has been fully disbursed. However, the approval of your loan depends on your repayment capacity. It is up to HDFC to assess your eligibility and ability to repay the EMIs for two home loans. Plot purchase loans are availed for purchase of a plot through direct allotment or a second sale transaction as well as to transfer your existing plot purchase loan availed from another bank /financial Institution. FLIP offers a customized solution to suit your repayment capacity which is likely to alter during the term of the loan.
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