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Prepayment helps in reducing the loan tenure, lower EMI amount, and helps you save a considerable amount of money in interest payments. While applying for the loan, you submit a bunch of original documents, including the sale deed, loan agreement, title deed, power of attorney, etc. Also, given the long tenures of home loans, the documents could be damaged over time, or there might be some missing pages. This makes it extremely important to check if all the submitted documents are present, and more importantly, in good condition.
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Can Fin Home Loan FAQs
To do this, first, compare the loan amount to your home loan statement. When you do this, make sure you also factor in thehome loan interest rates over time. Payments can be made once a month, bi-weekly, or weekly, depending on availability from the lender. A typical mortgage is for an amount that does not go over 75% of the appraised value of the property or the purchase price, whichever is lower. A minimum 25% of the purchase price is required for the down payment. However, with a high-ratio mortgage you may pay less than 25% of the cost of the home as a down payment.
For me axis bank loan amount has been sanctioned and all the process towards loan take over is completed only waiting for foreclosure letter from canfin for settling the total out standing liabilities. Collecting the documents – While applying for the housing loan, original documents of the property must be handed over to the bank. These documents must be collected back from the bank on closure of the loan. Prepayment charges are applicable @ 2% on the Principal repaid in the case of fixed rate of interest HL schemes. The loan eligibility will be determined by CFHL on the basis of income duly supported by the relevant documentary proof, age, qualifications, number of dependents, Co-applicant’s income, assets, liabilities, stability and continuity of occupation, savings, prior credit history etc. The value of property selected will also be a factor in the assessment of loan eligibility.
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These are generally offered to applicants that do not meet the normal income and/or credit qualifying mortgage guidelines (i.e. little or no income verification, self-employed, and/or less-than-perfect credit). With an open mortgage you have the ability to repay the mortgage at any time without penalty. The availability options are reduced to shorter terms , and the interest rate is higher than closed mortgages as much as 1%, or more.
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Confirm there are no outstanding dues
Ongoing home loans that were taken some years ago may be attracting a higher rate of interest compared to home loans being disbursed now. If there’s a substantial gap in the market rates now and the rate on your ongoing loan, you may refinance it. You can approach your own lender to bargain for a lower rate or transfer your loan to another lender offering you better terms. A loan balance transfer involves taking the new loan to pay off and pre-close the old loan. For some loan schemes, the interest rate is fixed for the first 3 years and then converted to the floating rate prevalent at the time with the payment of specific conversion charges.
Unlike the no dues certificate, the non-encumbrance certificate is an all-in-one legal document with a list of property transactions. It can be used to testify your loan repayments along with your CIBIL score and loan repayment history and benefits any future loan application approvals. Make sure you get your credit history and loan statements updated from your lender. This is crucial because they are proof of your creditworthiness and your debt repayment record, respectively. One of the first steps towards loan closure is making sure there are no pending dues.
Loans are a form of financial aid extended by banks to help you organise funds for different purposes. For instance, you can rely on Home Loans, Auto Loans and Personal Loans to buy properties, vehicles, and meet other financial requirements, respectively. Today, you can repay a loan conveniently in affordable EMI payments.
However, banks and other financial institutions offer the Home Loan pre-closure facility to help the borrowers prepay the loan, in parts or in full, before the actual loan tenure, to secure significant savings on the interest outflow. It is generally done when a borrower secures a lump sum amount or even while using the Balance Transfer facility for switching to another lender. Amortization is the paying off of the mortgage debt in regular installments over a period of time, i.e. 30 years. If you pay the same monthly amount according to the terms of your note, then your debt will be paid in the exact number of years outlined for you.
The tenure for Can Fin Home Loan will vary from 5 years to 30 years. After 3 years, ROI will switch to prevailing floating rate for residual amount. You are just a few clicks away from the best Home Loan offer in your city. Currently home loan interest rate starts at 8.00% p.a for all loan amounts. Share your name, mobile number & email to check your eligibility and get a list of most affordable home loan schemes. You can also prepay a portion of the loan amount before the tenure ends.
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Do use the low interest rates, financial planning, and regular pre-payments to your advantage. You may plan pre-payment or a pre-closure of your home loan by saving money for this purpose. You can use your surplus monthly income to invest in instruments like RD or mutual funds or a combination of both to build a corpus that can be used to pay off your loan.
The amount you pay over and above your dues will be treated as principal payments, which will also act as pre-payments and help you pay off your loan sooner. You should step up your EMIs periodically in line with your rising income. For example, if your starting EMI was Rs 25,000 while your take-home pay was Rs 60,000, you can increase your EMI to Rs 50,000 if your take-home pay is now Rs 120,000. Of course, this is an illustration, and you must calculate the step-up basis your financial circumstances. This Website is provided to you on an "as is" and "where-is" basis, without any warranty. Any access to information hosted on third party websites of billers/banks/merchants/ABC Companies etc. is not intended and shall not be treated as an offer to sell or the solicitation of an offer to buy any product/offering of these ABC Companies or third parties.
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In this case, the borrower simply applies for a loan in a desired bank, and upon approval, the bank pays off the existing loan in full, thereby allowing the borrower to avail a loan with a lowered interest rate. Before pre-closing your home loan, you should assess whether it suits you financially or not. Home loan is one of the cheapest loan products available in the market, and before you squeeze your liquidity to repay it, you should carefully study its impact on your tax liability as well.
The mortgage lender will inquire about such things as your marital status, number of dependents, age, current employment , salary, as well as other sources of income. They will ask for a list of your assets (i.e. vehicles, cash, etc.) and liabilities (i.e. credit card balances, car loans, etc.). Lenders also do a credit check to find out if you pay your bills on time. Some of the top lenders do not charge any prepayment charges on home loans offered on floating interest. However, if you have taken the home loan on fixed interest, the prepayment charges can be up to 2% of the total principal outstanding. Discount points are prepaid interest and allow you to buy down your interest rate.
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