'What are DMA/ DSA?'
- A DMA / DSA are a go-between between the borrower and the Bank, who negotiates the loan on your behalf.
- They will do the legwork on researching on the number of available products, and then support you through the application and documentation process.
- They don’t charge the borrower for their service, as they are paid by the lender when loan is disbursed.
'Why Capital Corp?'
- There are a number of benefits, particularly through the application process.
- Firstly, we shop around for you. Everyone knows shopping around could lead to a better deal but it’s time consuming, especially if it involves contacting a number of banks. We can search the range of loans available from multiple lenders very quickly to find you the right Home Loan / LAP product for your needs.
- We also provide you with one central point for all information and will hand hold you through the process.
- Our services are at your door step and till you occupy the property ie; till the final tranche of your loan amount is disbursed to the builder / seller.
- All banks have different guidelines, and unless you’re familiar with them you can find yourself not getting a loan or choosing a wrong product..
- Your financial circumstances can evolve over time, so can the products and services available for you to choose from. You may want to fix part of your loan, refinance or perhaps buy an investment property.
- We are there to help you purchase your first home, but also can be valuable to you again in the future, whether to help you with information to finance your next home, buy an investment property or refinance your existing Home Loan.
'What are Repo rate and Reverse Repo rate?'
Repo (Repurchase) rate is the rate at which Reserve Bank of India lends shot-term money to Banks against securities.
Reverse Repo rate is the rate at which banks park their short-term excess liquidity with Reserve Bank of India.
'What is Base Rate?'
The Base Rate is the minimum interest rate of a Bank below which it cannot lend, except for cases allowed by RBI.
'What is Floating Rate / Fixed Rate?'
Floating Rates are fluctuating in nature depends on the movement of Base Rate / RPLR rate, which inturn depends on Repo Rate / Reverse Repo Rate / CRR.
Floating Rates are linked to Base Rate / RPLR Rate and the margin or discount will be constant throughout the tenure of loan.
Fixed Rate are supposed to be fixed throughout the tenure, however now only Semi fixed products are available wherein rate of interest will be fixed for a certain period of time and thereafter floating.
** Foreclosure fees are charged by banks for the tenure when it is fixed.
'What is the maximum tenure for loan?'
Maximum tenure of loan depends on Type of Property and age of the applicant,
- Maximum tenure for home loan (Resident Indians) – 20 yrs
- Maximum tenure for home loan (Non Resident Indians) – 15 yrs
- Maximum Tenure as per age (Salaried) – 58 yrs or Retirement whichever is earlier.
- Maximum Tenure as per age (Self Employed) – 65 yrs.
- Maximum Age of Property owner wherein income is not considered – 80 yrs
** Age mentioned is as on loan maturity.
'What are Part Payment and foreclosure conditions?'
Part payment and Fore-closure fees have been waived by HFC’s as per direction received from NHB and most Banks have also waived Fore closure fees,
'What is Co-applicant and who can be Co-applicants?'
Co-applicant are the second applicant for the loan who become Co-applicant for two reasons,
- They are Owners of Property.
- Their income is considered to arrive at Loan Eligibility.
** ALL Co-owners have to be Co-applicants for loan
** All Co-applicants need not be Co-owners.
Generally the below matrix is considered for applicant and co-applicant.
- Husband + Wife
- Father + Son
- Mother + Son
- Brother + Brother
** There can be more than one co-applicant in the loan.
'What is Balance Transfer loans ?'
Balance Transfer or Refinancing your existing loan is the process of replacing or extending an existing loan with funds from a different Bank. When you change loan products with the same Bank the process is often referred to as a loan switch or loan re-negotiation.
'Why should I opt for Balance Transfer?'
The three main reasons many borrowers choose for Balance Transfer are to reduce their repayments, save on the interest charged and/or change lenders in search of improved service quality.
You may also consider for Balance Transfer when:
- Your financial circumstances have changed and you want to move to a Bank that is well suited to your current needs
- Your fixed rate loan term is nearing the end of the fixed period
- You wish to roll several debts into one loan (debt consolidation)
- You want to increase the loan amount to buy an investment property, make property improvements, access funds for education, marriage etc…
'What are the costs involved to Balance Transfer my existing Home loan / LAP ?'
Most banks/HFC’s have waived foreclosure charges to close home loans currently in variable / floating rate, however fixed rate home loans and loan against property loans have foreclosure fees mostly 2% of the outstanding principal for home loans and between 2% - 5% for loan against property loans.
Loan Processing fees needs to be paid to the new bank who are intending to take over the loan , Have check on periodic offers from banks waiving processing charges for BalanceTransfer loans
'How do I work out if Refinancing is worthwhile for me?'
There are many factors that can influence the outcome of your refinanced loan. Interest rate is an obvious factor, but the costs to refinance (e.g. foreclosure charges, processing charges ) may outweigh the savings achieved by a nominally lower rate. On the other hand, additional features such as Top-up loan, Extended Tenure may help give you extra savings making Balance Transfer a prudent choice. The key is to crunch the numbers, but it's best to consult our home loan officer to help with your calculation.
'Should I refinance to consolidate my debt?'
Consolidating your debt can be a good strategy to keep your finances in order, but can turn out to be costly if not managed with care. Rolling short-term debts (such as your credit card or personal loan) into your mortgage may ease the immediate repayment pressure, but bear in mind you're actually turning them into a long-term debt which means you'll likely end up paying more in overall interest. You'll be better placed to reap the full benefits of debt-consolidation when it's combined with a commitment to reduce your spending or make extra repayments.
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