A couple of good news for the property buyers. First one is that the home loan interest rates are at rock bottom. It helps to increase the home loan eligibility of a property buyer thus increasing affordability. The second one is that in the recent past, I observed that builders have started offering indirect discounts to the property buyers. In my previous post, I shared how the builders are controlling/managing the rates in Primary Market Rates. The indirect discount is the 2nd step if the builders fail to attract buyers i.e. not able to control or manage the property prices. The next ... Read More
Joint Home Loan – 5 Most Common MYTHS
Joint Home Loan is one of the best-marketed product by banks and HFC's. Through Joint Home Loan banks hedge their mortgage risk. These days almost all the banks insist on Joint Home Loan even if the property is bought in a single name. Quite interestingly even if the wife is non-earning/housewife then also banks insist on Joint Home Loan. The biggest carrot to SELL Joint Home Loan is Home Loan Tax Benefits. I agree that if both Husband and Wife are availing tax benefits then it makes sense to avail Joint Home Loan else it's a BIG NO. Recently, one the readers of this blog complained to RBI ... Read More
Home Loan Eligibility Value – What is Your True Worth
Yesterday while watching TV, a commercial caught my attention. The commercial was by Aditya Birla Finance Home Loans - Know Your True Worth. The advertisement emphasized how you should find your true worth as a borrower for property purchase. In layman terms, home loan eligibility value should reflect the true worth of an individual. It helps the borrower to buy the dream house of his/her choice. Take a look at the commercial below: https://www.youtube.com/watch?v=rzq89PNXkRM In the past, I have shared a couple of posts on home loan eligibility value. In one post, How Home Loan Eligibility ... Read More
SBI FlexiPay Home Loan – Why you should Avoid
SBI FlexiPay Home Loan is a new Home Loan product from SBI. SBI is the country's largest lender. Obviously, i was expecting a lot of buzz around SBI FlexiPay Home Loan. I also shared in my post, why borrowers prefer SBI Home Loan. As usual, my friends from personal finance space jumped the guns to declare it is as the best product around. I will not get into the nitty gritty of SBI FlexiPay Home Loan. I hope all potential borrowers must have gone through the same. It is always important to analyze a product from end user perspective rather being a seller/marketer. The objective of this blog is ... Read More
What is the ideal Home Loan Tenure?
Home Loan Tenure is one of the most crucial decision making factor during Home Loan Process. Home Loan Tenure has a direct impact on your cost of borrowing. In turn, the cost of borrowing increases your overall cost of the property. I receive many queries on what should be the ideal Home Loan Tenure?. There is no standard answer to this query. As a borrower, you need to arrive at the optimal value which should be a fine/comfortable balance between your current financial condition and your Home Loan requirement. The home loan providers i.e. banks/HFC's push for longer home loan tenure as it is ... Read More
Review – ICICI Bank Extraa Home Loan
ICICI Bank Extraa Home Loan is a new Home Loan product for retail borrowers. Currently, ICICI Bank Extraa Home Loan is available only in Greater Mumbai, Delhi & NCR, Bangalore and Surat. It seems that ICICI Bank is test marketing the product before full-fledged launch. These 4 cities are selected considering the target group and concentration of potential borrowers in mind. ICICI Bank Extraa Home Loan is available for Home Loans of up to 75 lacs. In layman terms, ICICI Bank Extraa Home Loan is useful for the borrowers who fall short on eligibility criterion due to age or income factor. As ... Read More