Business Standard

Planning to take home loan? Make sure you are on the best rate available

Many lenders nowadays waive the processing fee on home loan transfers

house, home
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Sanjay Kumar Singh
  • Every six months home loan borrowers should compare the interest rate on their own loan with the best rates available in the market. 
  • If the difference is 50 basis points or more, they should consider shifting.
  • Many lenders waive the processing fee for customers who are transferring their loans from another lender.
  • The most significant cost involved in transferring is the stamp duty, which in a city like Mumbai is 0.2 per cent of loan value.
  • Many customers are still on home loans linked to the base rate, an older benchmark. 
  • Such customers would be paying a higher rate of interest. They need to shift
Topics : Home Loan

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