Nowadays, the customers are turning smart and with the increasing competition and the banks are thus now waiting for the customers. So one can thus definitely be a smart buyer in order to negotiate for the best deals and thus to avail the maximum out of the bank.The article below tells us about 5 incredibly smart questions which the borrower must ask his banker before taking a home loan.
1: Will you be considering statutory expenses?
One smart question which the borrower can ask his banker before finalizing the home loan deal is about the inclusion of any statutory expenses. This is because generally the banks don not cover the statutory expenses like stamp duty or the registration charges, any VAT or service tax which is to be paid as well as any other miscellaneous or the legal charges.
2: Would you consider my insurance policies as additional collateral?
The borrower shouldn’t get disheartened if his bank says that the borrower is not eligible for the applied amount. Even though the banks would tell the borrower the possibilities and a smart suggestion after knowing the fact that their logic can help him.
3: How will the changing interest rates affect my home loan?
The fixed versus the floating interest rate dilemma has thus been traditionally one of the most difficult decisions for the home loan borrowers. Over the years with the fixed home loans becoming way high as compared to floating rate of interests, most of the home loans have thus been offered with the floating interest rate. The interest rates offered which are offered by the banks thus depend on the RBI repo rate which is however announced periodically. A decrease in the repo rate however usually results in the lowering of interest rates. Thus before finalizing the home loan, it is thus essential to check with the banker about how the changing interest rates would thus affect the home loan.
4: Do you allow home loan refinance? :
Sometimes home loans may get difficult in order to repay due to the variety of reasons which includes financial crisis. The borrower, however, must ask the bank beforehand as to how it would be if the borrower requests for a balance transfer.
5: Do you offer the mortgage account with an overdraft facility? : The changing face of the home loan market has made the banks and the NBFCs to introduce various new features. Overdraft on the home loans is one such which however allows the borrower to park the surplus funds in the loan account. The borrower is free to withdraw the deposit and then use the funds in case he wants to invest in an attractive investment opportunity while the interest rate is charged on the remaining balance. Instead of prepaying the home loan, the borrower can look at using the mortgage as an overdraft.
Many people thus still buy home loan without checking and then comparing the various aspects of it. Only the rate of interest is always taken as the one factor before finalizing a home loan agreement. There are however many other factors that which the borrower must keep in mind and then discuss proactively with the banker before choosing the home loan deal.