What is internal home loan balance transfer?

Home loan balance transfer is a process where the home loan of a particular borrower is transferred from one bank to another, usually for a lower rate of interest. The new bank will pay off the loan in entirety to the existing bank, and all future home loan payments will have to be paid towards the new bank after the home loan transfer.

In case of an internal home loan balance transfer, it is a process where the home loan is transferred to another individual within the same bank. Let’s say that you have an existing home loan with a particular bank and would like to sell your house. At the same time, the buyer of the property would like to avail a loan to make the purchase. Instead of having to close your existing loan, and the buyer having to apply for another loan, the buyer simply takes over the existing loan. This is known as internal home loan balance transfer.

Requirements to internally transfer your home loan

• A letter of consent from the existing borrower to foreclose his loan in lieu of the property being sold 
• A loan application form that is duly filled by the new owner of the property
• The processing fee for the loan must be provided to the bank
• No objection certificate from the developer
• Any prepayment charges will have to be borne by the new owner

Steps To Manage Your Home Loan EMI

The home loan market has boomed in the last couple of years and it has allowed a lot more people to purchase a house. However, the flipside is that many home loan borrowers are having trouble with the EMIs. Usually, the monthly instalments that need to be paid are overwhelming to the borrower to the extent that their lifestyle has been compromised. And, since a home loan is a long-term investment, one must be wary about being unable to manage the EMI associated with it.

Mentioned below are some tips to help you manage your home loan EMI.

• Understand your monthly financial outflow – Prior to obtaining a home loan, understand the monthly outflow of cash that you need to set aside to pay off your EMI. There are several online home loan EMI calculators to help you determine this. Make use of these calculators to gauge if you are capable of repaying the loan. If the EMI exceeds 40 – 50% of your monthly income, it is a good idea to reconsider availing the loan. If you have other debts, reduce these debts from your monthly income and calculate 40 – 50% of this amount. If your home loan exceeds this amount, it is advisable to reconsider your home loan.
• Pay higher EMIs – Choosing a home loan with a higher EMI means that you will save on the total interest payable. This also helps you reduce the tenure on your home loan. However, one must keep the previous point in mind as well when opting for a loan with a higher EMI. One must not simply opt for a higher EMI if the current lifestyle is being compromised.
• Increase your EMI payments – Home loans are long-term investments, and during the tenure, an applicant’s income is bound to increase. Increasing your EMI as and when your income increases will help you save on the total interest payable and will reduce the tenure of the loan as well. This also applies to instances when a borrower receives a bonus or a lump sum amount. It makes sense to pay a part of it or the entire amount towards the home loan. This is because it helps you save on a substantial amount of the total interest payable.
• Transfer your home loan – If you have been paying off the home loan diligently for a while, you can request your bank to reduce the rate of interest. If the bank doesn’t oblige, you can choose to transfer your home loan to another bank. Most banks allow home loan balance transfers and this can help reduce the rate of interest and also modify the EMI. in this process.The new bank will pay off the home loan to your existing bank and all future EMIs will have to be paid to the new bank. However, it must be understood that after a while of paying back the home loan, you would primarily be paying back the principal and only a part of the interest. This means that you have paid off most of the interest on your home loan. It is, therefore, illogical to transfer your home loan after a certain point of the tenure of the home loan.
• Make prepayments – As mentioned earlier, make the effort to utilise any additional income you may receive to make partial prepayments toward the home loan. Although you may view it as losing out on a lump sum amount at once, you are actually saving on a lot of money by making prepayments. Usually, banks do not charge you on prepayments, and preclosure. Therefore, in order to save money, it is logical to make prepayments.
• Reassess your investments – If the total return on your investments is lesser than the total interest payable on your home loan, it is sensible to withdraw these investments to pay off the home loan. This is so because the marginal interest you avail from the investments will be overshadowed by the total interest you save by prepaying the home loan.

A home loan is a long-term commitment, therefore, it is important to make sure that you are financially capable of repaying this loan even before applying for it. Use online platforms that will help you assess the financial outflow you would have to incur to pay back the loan, and proceed cautiously. In case you are burdened by an existing home loan, follow the steps mentioned in this article and maintain financial discipline for a while. This will help you ease the EMI burden and will also help you pay off the home loan faster. Also consider refinancing your home loan to reduce the EMI you have to pay. However, this should be considered only after negotiating with your existing bank first.

Guide to LAP or Loan Against Property

When you avail a loan from a bank or an NBFC against your property that you keep as collateral, it is called loan against property. This is a secured form of loan as a collateral is involved. The repayment guarantee is provided in the form of collateral by this borrower.

Often, individuals ask how much loan can they avail if they go for loan against property. Thing is, you must first know the value of the property that you are going to offer as collateral. The loan that you can avail depends on the value of your property.

Generally, banks and other lenders offer up to 65% of the property value as loan against property. You must also understand that every loan comes with a rate of interest. Different lenders offer different rates of interest with their loans. You will be charged an interest rate ranging between 12% and 16% with the loan against property.

The tenure of the loan will be 15 years. However, if you wish to get a clear idea about the tenure associated with your loan and the rate that you have to pay, you should talk to the bank or NBFC from where you are getting the loan. The tenure and rates may vary from one lender to another.

Uses Of Loan Against Property:

Loan against property or LAP is a great way to avail funds when you need to arrange money for any high expenditure. Find below a list of things that can be carried out using loan against property:

• Wedding
• Purchasing land, a new house, or a commercial property.
• Setting up your business.
• Medical emergencies.
• Studying abroad.
• Honeymoon, family vacation, solo travel.

Please remember that these are not the only things that you can do using the loan against property. However it is very important for you to understand that the money should be put to good use. In case you end of spending the money on something that is not worth it and then fail to repay your debt, you might end up losing your house to the lender.

Types Of Properties Against Which You Can Avail Loan Against Property:

The types of properties against which you can avail loan against property are mentioned below:

1. Self-owned but rented commercial property.
2. Self-owned commercial property.
3. Self-owned plot of land.
4. Self-owned but rented residential property.
5. Self-owned and self-occupied residential property.
6. Self-owned residential property.

Factors That Determine Eligibility For Loan Against Property:

Your ability to repay the loan, financial status, and the property value are some of the common things that are considered for the determination of your eligibility towards the loan against property that you apply for. Your current debts and all your savings are also taken into consideration for determining your loan against property eligibility.

Perks Of Applying For A Loan Against Property:

• Loan against property offers a long tenure and make EMI payments easy for you.
• When compared to a personal loan, you can avail a bigger amount with loan against property.
• Since it is a secured loan, the rates are much lower than any other unsecured loan.

Bottom Line:

It is extremely important for you to know your financial status before you apply for a loan against property. Compare various loans and pick the one that suits your needs the best.

Is A Plot Better Than A Flat?

When it comes to making the biggest financial decision of your life, which is buying a home, there is always one thing that most of us are confused about. The question here is whether to invest in a piece of land or to purchase a flat. This is the most common dilemma. Let us delve more into this to understand each of the aspects involved in these two investment decisions.

Let us first consider the price aspect. It generally costs lesser to buy a piece of land in the outskirts of the city or in a developing area. However, it is close to impossible to buy a plot in an upscale area. Middle and lower income groups tend to move towards flats. This can be comparatively more available and there are different budgets within which you will be able to purchase an apartment. On the other hand, even if you buy a piece of land, you will have to construct a home and the cost of construction is very high in today’s times. When you compare this to apartment, you have already been given a flat that is constructed. Price of an apartment depends on various factors and most apartments can prove to be more costly than land. However, the advantage here, again, is that an apartment in most cases is ready-to-move-in.

One of the other most important aspects to be considered is the appreciation factor. A plot of land will not only be your own completely but will also appreciate more when compared to a flat. Flats that are older will slowly start losing their value. This is because the building will slowly become older and disintegrate. This is definitely not the case when it comes to a piece of land.

When it comes to earning capacity, you can earn rent income from a flat. This not the case with a plot. You will not be able to do much with a plot unless you actually construct a house. You will have full ownership and control of the piece of land. This will not be the case in case of a flat because you only own a small portion of the total property. The other thing is that you can easily get a loan against an apartment but this will not be possible on a plot of land. Though it is not impossible, it is quite hard.

On the whole, it only depends on what your personal preferences are. Some people find it more convenient to go for a flat as it comes with amenities , while others who want to construct their own home want to go for a plot. Overall, it all depends on what you want.

The Property Inspection Checklist

Purchasing a property in India take a lot of time and effort. Due to this, there are instances where home buyers settle a house, which may cause them regret in future. It is of utmost importance, therefore, that you inspect the property thoroughly before purchasing it. Mentioned below is a checklist to follow before you purchase property.

• Foundation – A visual inspection of the pillars, walls, etc. can tell you a lot about a house. You do not need to be an expert to determine if the foundation of the house is solid or not.
• Exterior – As it is with visually evaluating the foundation, it is also equally important to inspect the exterior. This will also give you an idea of the quality of the exterior and also if the building requires any repair or reconstruction.
• Low lying area and poor drainage – In the event that the property is located in low-lying area, there are chances of water logging during the rainy season. It is best to avoid making investments in properties in low-lying areas. Water logging is not very sanitary as it can cause diseases an seepage in your house.
• Sunlight and ventilation – Every house must have adequate sunlight and ventilation for in order to lead a healthy lifestyle. The lack of these two essential elements, there are high chances of germs and diseases accumulating in the house. This is arguably one of the most important factors to look into before making an investment in a property.
• Size of the rooms – It’s a good idea to measure the sizes of the rooms just to understand if your furniture would fit easily into the room. It could be quite a setback if you cannot accommodate your furniture and end up spending additional money to purchase new furniture as well. This can also tell you the actual carpet area of the house.
• Water seepage and leaks – leaks and water seepages can cause huge burdens if not corrected in time. A water seepage can also spread throughout the house, making it an uncomfortable environment to live in. Apart from just weakening the walls and ceilings, water seepage is a very good habitat for termites and other such germs. A quick scan of the house can help you ascertain if there are water leakages or seepage. A quick point to keep in mind is that the top most floor of a house or apartment and the ground floor are more susceptible to these water damages. Although minor seepages can be corrected, houses with major water issues should be avoided at all costs.
• Cracks – Cracks and damages on walls can be an indication of poor construction. Check the house for any cracks on the walls or ceilings. This is a quick and easy way to determine the quality of the property. Generally, the more cracks you notice in a house, the more likely that it was poorly constructed.
• Doors and windows – Although damages on doors and windows may be easily corrected, it must be brought to the owner’s attention before purchase. Make sure the owner rectifies the issue before making a purchase.
• Electrical issues – As it is with doors and windows, electrical issues are usually easy to rectify. Check all electrical outlets, loose boards, etc., and bring it to the owner’s attention before making a purchase. Request for these issues to be rectified before investing in the property.
• Plumbing issues – A good plumbing system will ensure that there is no water leakage or seepage. Understanding if the plumbing system in the property is up to the mark will help you saves a lot of money and hardship in future. Unfortunately, not everyone can ascertain this, and therefore, you would need to hire a professional to do this for you. To review the plumbing system at a basic level, you can check for any leaks in the taps or valves. If you happen to notice any leaks, the property may have bad plumbing.
• Termites and bugs – Scanning the house for termites and bugs is a very good idea. This can definitely save you from suffering in future. If you happen to find bugs or termites, the best thing to do is to refrain from investing in the property. The second option you have is to request the owner to terminate these pests before you can make a purchase.
• Odour – If you sense any odour from the house, this can be an indication of water seepage or the presence of germs. This is a tricky situation to assess as bad odour can be caused by other factors that can be dealt with easily. Therefore, it is important to not make impetuous decisions with the odour of the house.
• Basement – Often, homebuyers tend to scan the entire house but oversee the basement. Basements can be a good indicator of the house’s overall situation. Check for cracks, ventilation, etc. to assess the quality of the basement. This is usually an indicator of the entire house’s health.
• Ventilating system – In case the house possesses a heating or cooling system, it is important to evaluate the condition of the duct, the age of the system, the maintenance, etc. In case the system doesn’t work, not only is it going to be a costly affair to rectify this, but you are also not going to be able to live in the ideal conditions.
• Security situation – Ensure the gated community has adequate CCTV cameras, security guards etc., if you are looking to purchase a property here. In case it is not a gated community, enquire with the neighbours about how secure the neighbourhood is. You may also consider hooking up some CCTV cameras yourself too.
• Maintenance – One of the major issues that home buyers fail to look up is the maintenance payable in apartments or gated communities. It is only after they have moved in that they realise that the maintenance charges are expensive. By now, it is too late to back out of the deal. It is important to understand the maintenance fee before making a purchase. If the fee is too high for you, do not invest in the house. However, make sure you take into consideration the proximity of hospitals, airports, schools, offices, markets, etc., before making this decision. There are cases where the convenience if these amenities outweigh the maintenance fee payable on the property.

Follow the checklist mentioned in this article before purchasing a property. It can be a strenuous task, but can help you save on a lot of time and money in future. After all, properties are long-term investments and you will be living here for a while. Therefore, it is important to look at the investment in a long-term standpoint.

Check :  Commercial property loan

Best Ways To Make Money Online With Real Estate

Wouldn't it be nice to be able to make some extra money just with a click of the mouse? All from your home computer? Well, with virtual real estate, it's easier than ever to earn money from the comfort of your own home. You can literally click the mouse and buy or sell a house! Many real estate professionals or online marketers who have knowledge of real estate often wonder if they can use their knowledge to make money online.

Well generally, you would find many articles on the internet that will tell you how you can promote your Real Estate brand or business online through various mediums. But none would talk about making money through online means. Let’s look at the best ways to earn money online:

• Affiliate marketing: Affiliate marketing is a type of marketing where you talk about or a write a review about a third-party product on your website and once the product is purchased by any one referred by you, you get paid by the product owner. Depending on the company or website, the commission will vary. Signing up for affiliate marketing is easy because most online companies will have a link off their site where you can sign up to be part of their program.
• Online surveys: There are several online companies who are interested in what you have to say. In fact, they will pay you to take simple surveys. All you need to do is register with an online survey company. Once you register, you will need to fill out your profile because most companies are looking for certain profile types to fill out surveys depending on their product or service, or what they're looking for at the time.
• Creating a website: If you have a hobby or passion, why not create a website? With this, there are countless ways to earn money. Once you create the content to keep people interested and coming to your site, you can use your website to refer people to other websites to buy products where you will earn a commission, use Google AdSense, or even sell your own product.
• Content marketing and content writing: The other way of making money online is by writing for a website or a real estate blog. You enrol yourself on any of the freelancer websites like ContentMart, Constant-Content, UPWork, etc. Write at least 500-1,000 words on topics related to real estate. There are enough jobs posted on these portals for you to have your hands full. Additionally, if you know SEM, social media, and SEO, then you can offer digital marketing services on these portals.
• YouTube: In the last five years, YouTube has emerged as a great source of promotion for you or your brand. You can search about top YouTubers and their earnings, you will be surprised to learn about the kind of money they make just making videos. Even if you are working as a real estate agent, you can share information about your locality, your services and educate your potential customers.
• Paid events and products: You can develop your own products like a software or a course and sell directly on your website or through affiliates. You can also organize paid online webinars or events that cater to your industry audience. You can even raise funds online and invest in real estate. This allows investors to invest in any type of real estate online, helping them diversify their investments with a function that is very similar to investing in the stock market.
• Be an Airbnb host: If you want to make some extra money from the virtual real estate industry, then you can try Airbnb. Here, the website is the investor, which allows you to list short-term vacation rentals online for interested guests to see and rent out. In terms of earnings, you dictate how much you earn, to some extent. You set the price of your Airbnb property, which will depend on various factors such as location, property, market, season, and amenities you include.

Bottom line:
There exist many ways to make money online as a real estate investor. Some are purely real estate related, such as Airbnb, while others are more extreme virtual versions of the real estate market. Whichever your method of investment is, make sure to visit our website at BankBazaar, where you can find more blogs and guides related to all aspects of real estate investing, in addition to some powerful ways to double your money on investment that can optimize your real-life real estate investment strategies and help you generate significant profits.

Hence, it is absolutely necessary for you to know your facts about the real estate industry. This will help you in the future to easily get jobs and paid well. Pick up good practises like SEO to manage your website and sell your products for free.

How To Manage Home Loan EMIs

Home loans have become easier to obtain in the last few years, and this has also caused a lot of financial burden on borrowers. The expanding home loan market has increased defaulters as well. Being unable to pay off the EMIs efficiently has been a problem that needs to be addressed. Mentioned below are tips that can be followed to manage your home loan EMI better.

• Reduce the EMIs – The easiest way to reduce the burden of EMI is to negotiate with the bank to reduce the EMI you need to pay towards the loan. I many cases the bank will oblige due to the immense competition in the home loan market.
• Refinance your home loan – In case the bank doesn’t reduce the EMI, consider refinancing your home loan. Refinancing is a procedure that involves transferring your home loan balance from one bank to another. This may help you reduce the EMI on your home loan.
• Try to postpone your EMI – If you feel that your financial issue is only temporary, approach the bank to postpone the EMI payment. If you have been making the payments promptly, the bank is likely to oblige to your request.
• Make use of any additional income – Use any additional income that may receive, like bonuses, etc., to pay off your home loan. This will help reduce your EMI burden and also help you close your housing loan faster.
• Make use of EMI calculators – Before you avail a housing loan, understand the financial outflow you would need to incur on a monthly basis to pay it off. If you think that a loan would be too expensive for you, it would be a wise decision to not take it up. Make use of EMI calculators to help understand the monthly commitment you need to incur. Remember, the EMIs payable towards a home loan should not affect your lifestyle.
• Reassess your investments – If your ROI (Return on Investments) is lesser than the interest that you pay on your housing loan, it is advisable to withdraw these investments and prepay your home loan.

A home loan is a long term commitment, therefore, it is important to make sure that you are financially capably of repaying this loan before even applying for it. Use online platforms that will help you assess the financial outflow you would have to incur to pay back the loan, and proceed cautiously. In case you are burdened by an existing home loan, follow the steps mentioned in this article and maintain financial discipline for a while. This will help you ease the EMI burden and also will help you pay off the home loan faster. Also consider refinancing your home loan to reduce the EMI you have to pay. However, this should be considered only after negotiating with your existing bank first.