Application/Administrative/Login fees

This cost, which is charged at the start of the house loan application, is not often combined with processing fees. This charge is not repaid if the loan is refused. The charge ranges between Rs.2000 and Rs.7000.

Fees for External Opinion

This charge is payable by the borrower in order for their property to be appraised and legal opinions on their loan to be obtained for the advantage of the lender. The property evaluation fee assures that the property that the borrower is planning to acquire with the home loan is worth the amount of money and it confirms your loan application in the lender's eyes. The legal opinion fee is paid to obtain a legal evaluation of the property before the lender agrees to make a loan to acquire it. The legal examination assures that the property/land on which the property is being constructed is free of any legal conflicts and/or the prior mortgage. This is normally a set cost that is paid regardless of the loan that is being sought for.

Regulatory Charges or Statutory Fees

These are the fees paid by the home loan applicant to the regulatory/governmental agency in charge of overseeing the sale/purchase/lending/borrowing. Stamp duty, memorandum of demand (MOD), memorandum of mortgage (MOE), and Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) costs are among these fees. CERSAI registration of the loan and the property is beneficial since CERSAI guarantees that the borrower does not utilise the same collateral for several loans.

Other statutory and regulatory authorities in the state may impose their own fees. These fees are paid by the borrower and should be considered before signing a loan arrangement.

Home Loan Insurance Premium

Though not required, home loan insurance protects both the lender and the borrower in the event of an unanticipated occurrence. For lesser principle loan amounts, the premium for home loan insurance is a set sum.

The home loan insurance premium, on the other hand, is determined as a percentage of the loan amount for bigger house loans. Typically, lenders charge this premium at the time of loan closing; however, if the premium is deemed excessive, it may be paid in instalments.

Documentation Fees/Government Charges

This is a collection of numerous modest charge sums that are not noteworthy individually but can add up to a sizable sum when added together. These include government stamping costs, income tax certificate charges, and No Objection Certificate (NOC)/No Dues Certificate (NDC) charges. The NOC/NDC is required to affirm that the borrower has fully returned the loan and has no further financial obligations to the lender.

Duplicate NOC/NDC issuance may result in revalidation fees. In addition, agreement copy costs, title document issue fees, duplicate statement issuance fees, amortisation fees, and document retrieval fees may apply.

It should be emphasised that not all of these adjustments must be paid for. Some of these are frequently waived off by the bank or lending institution. It is, nevertheless, prudent to double- check the loan agreement's tiny print to ensure what the borrower must pay in addition to the EMI.

Other Fees and Charges on a Home Loan

In addition to the home loan fees and charges described above, the bank or lending institution may levy further costs to guarantee that the lending institution does not experience losses during repayment. The following are some examples of such fees/charges:

Delayed Payment Charges

When a borrower fails to make Equated Monthly Instalments, he or she is subject to late payment penalties (EMIs). The late payment penalties vary from 1% to 2% of the outstanding loan amount. The actual sum payable may or may not be significant.

Applicants should be aware that any anomalies in payments must be reported, which results in a worse CIBIL score for the borrower. A poor credit history lowers the borrower's ability to purchase credit-related financial items in the future.

Incidental/Recovery/Collection Charges

The major aim of these charges is that if the borrower fails to make EMI payments, the bank or lending institution may need to commence legal procedures against the borrower despite due reminders of repayment (s).

The charges incurred in such processes are recovered by the bank or financial institution from the borrower's already deposited Incidental/Recovery/Collection charges.

It should also be noted that an extra 18 per cent GST is paid on house loan processing costs, which should be factored into the calculations when considering a mortgage. Some banks may provide refunds for processing expenses. Before applying, the borrower should thoroughly grasp the return policy and the percentage refunded.