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Mortgage Loan

Mortgage Loan Services

A mortgage loan is a secured loan used to purchase real estate, where the property itself serves as collateral. This guide will cover the basics, types, application process, and tips for securing a favorable mortgage.

A mortgage loan is a type of secured loan that enables individuals and businesses to purchase or refinance real estate. This loan uses the property being purchased or refinanced as collateral, meaning the lender has the right to seize the property if the borrower fails to repay the loan. Mortgage loans are a cornerstone of homeownership, making it possible for people to buy homes without paying the full purchase price upfront.

Eligibility Criteria for a Home Loan

When considering a mortgage  loan, it's important to understand the eligibility criteria set by lenders. These criteria can vary from one lender to another, but generally include the following factors:

Aged between 21 and 60 years

Having a job and a minimum of 3 months experience

Having a minimum of Rs. 25,000 net income per month.

Documentation Required

Photo Identity Proof

  • PAN Card
  • Passport
  • Voter ID
  • Aadhaar Card

Proof of Residence or Address Proof

  • Aadhaar Card
  • Passport
  • Voter's ID
  • Utility Bills
  • Driving Licence

Income Proof

  • Last 12 months’ statements for current and savings accounts
  • Balance sheet and Profit/Loss Account audited by a registered CA for the last two years
  • Last three years of ITRs - both company and individual

Others

  • PAN Card of the company/partnership firm
  • A certified copy of Partnership Deed agreement
  • GST Registration Certificate
  • Registration of Incorporation
  • Business address proof
  • Articles of Association and Memorandum of Association documents
  • Professional Practice Licence for Consultants, Doctors, etc.

Mortgage Loan Balance Transfer

A mortgage loan balance transfer involves moving your existing home loan from one lender to another, typically to take advantage of better terms, such as lower interest rates. This can lead to significant savings over the life of the loan and provide other benefits. Here’s an in-depth look at the process and advantages of a mortgage loan balance transfer.

A mortgage loan balance transfer, also known as refinancing, is the process of transferring your outstanding home loan balance from your current lender to a new lender. This is done to benefit from better interest rates, lower EMIs (Equated Monthly Installments), or improved loan terms.

Documents required for a balance transfer

  • Identity proof – Passport, Aadhar Card, Driving License, etc.
  • Address proof – Aadhaar Card, Passport, Voter’s ID, etc.
  • Bank statements - Last 12 months’ statements for current and savings accounts
  • Income proof - Balance sheet and Profit/Loss Account audited by a registered CA for the last two years, last three years of ITRs - both company and individual
  • Property documents - Allotment Letter, Sale Deed, NOC, Allotment Letter from Society, Stamped Agreement of Sale, Possession Certificate, etc.

Eligibility

Different financial institutions use their own set of eligibility criteria. Check home loan eligibility online of your chosen lender before you make a decision. These are some common eligibility criteria laid out by banks and NBFCs that you must fulfill:

  • Be a salaried or a working professional or self-employed
  • Be a Resident Indian, Non-Resident Indian (NRI), or a Person of Indian Origin (PIO)
  • Aged between 21 and 65 years
  • Having a minimum work or business experience of 1 year
  • Having a minimum monthly income of Rs. 20,000

Conduct a home loan eligibility check online to understand if you can apply for a loan with the lender of your choice.

Benefits of a Mortgage Loan

Affordable Interest Rates

Mortgage loans generally offer lower interest rates compared to unsecured loans, making them more affordable over the long term.

Tax Benefits

You may be eligible for tax deductions on the interest paid and the principal repayment under various sections of the Income Tax Act.

Flexible Tenure

mortgage loans come with flexible repayment terms, allowing you to choose a tenure that suits your financial situation.

Property Appreciation

Real estate typically appreciates over time, potentially increasing the value of your investment.

Application Process

Step-1

Connect with us and explain your needs. We curate a bunch of loan products most suitable for your profile

Step-2

Next, we help you compare several mortage loan products so you can choose the best one.

Step-3

Once you've picked a lender, we help you with the application process. You need to apply for the loan online and submit all necessary paperwork.

Step-4

Once you submit your application, the lender takes some time to process it and verify your documentation.

Step-5

Finally, you receive the loan amount in your account.

Feel free to use our Equipment Finance Calculator

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FREQUENTLY ASKED QUESTIONS

Find Answers to Common Questions

    • Fixed-Rate Mortgages (FRMs): The interest rate remains constant throughout the loan term, providing predictable monthly payments.
    • Adjustable-Rate Mortgages (ARMs): The interest rate can change periodically based on market conditions, typically starting lower than fixed rates.
    • FHA Loans: Insured by the Federal Housing Administration, these loans offer lower down payments and are accessible to borrowers with lower credit scores.
    • VA Loans: Guaranteed by the Department of Veterans Affairs for eligible veterans, often with no down payment required.
    • USDA Loans: Offered by the U.S. Department of Agriculture for rural property buyers, often with low or no down payment.
    • Jumbo Loans: For loan amounts exceeding the conforming limits set by Fannie Mae and Freddie Mac, typically used for high-value properties.

    Eligibility criteria vary by lender and loan type but generally include:

    • Credit Score: A good credit score (usually 620 and above for conventional loans, lower for FHA loans).
    • Income Proof: Stable and sufficient income to demonstrate the ability to repay the loan.
    • Debt-to-Income Ratio (DTI): Lenders prefer a DTI of 43% or lower.
    • Down Payment: A percentage of the property’s purchase price, typically ranging from 3% to 20%.
    • Employment History: Steady employment or business income, usually for at least two years.

    The loan amount you can borrow depends on several factors, including your income, credit score, DTI ratio, and the value of the property. Lenders use these factors to determine your borrowing capacity.

    A typical mortgage payment includes:

    • Principal: The amount borrowed to purchase the property.
    • Interest: The cost of borrowing the principal amount.
    • Taxes: Property taxes, which are often escrowed and paid by the lender on your behalf.
    • Insurance: Homeowners insurance and, if applicable, private mortgage insurance (PMI).

    Closing costs are fees associated with finalizing a mortgage loan, typically ranging from 2% to 5% of the loan amount. These costs can include:

    • Origination Fees: Charged by the lender for processing the loan.
    • Appraisal Fees: For assessing the property's value.
    • Title Insurance: Protects against disputes over property ownership.
    • Attorney Fees: For legal services.
    • Recording Fees: For filing the property deed.

    Yes, you can pay off your mortgage early. However, some loans may have prepayment penalties, which are fees charged for paying off the loan before the term ends. It's important to check your loan agreement for any prepayment penalties.

    Missing a mortgage payment can lead to:

    • Late Fees: Lenders typically charge late fees for missed payments.
    • Credit Score Impact: Late payments can negatively affect your credit score.
    • Foreclosure: If payments are missed for an extended period, the lender may initiate foreclosure proceedings to seize the property.