Purchase Guidelines

Which documents are to be verified before Purchase of a Flat?
Before you purchase a flat, you need to have a title and document search conducted by a competent advocate. You cannot do it yourself. You have to use the services of a competent advocate. It is a professional job to be done with professional assistance.

How is an EMI calculated?

EMI or Equated Monthly Installment is the amount payable to the lending institution every month, till the loan is paid back in full. It consists of a portion of the interest as well as the principal. EMI Formula: l x r [(1+r)n /(1+r)n-1 ] x 1/12 (l = loan amount, r = rate of interest, n = term of the loan)

How does a housing finance company decide on the loan amount?

Most companies give a maximum of 85% of the cost of the house. The 15% (seed money) will have to be provided by the loan applicant. The amount, for which the applicant is eligible, is determined by the age, income, no. of dependents, monthly outgoing and repayment capacity.

Is there a right time to apply for a home loan?

Loans may be applied for before or after selection of property. The loan amounts are sanctioned in principle to let you know what amounts you can avail of. This helps you decide your budget. Actual disbursements are made after satisfactory verification of all necessary documents and completion of specific procedures.

What documents should I verify before buying any property?

If you want to purchase a property, you must see the approved layout plan, approved building plan, ownership documents, carryout search, etc.

Is Stamp Duty payable on the market value or as stated in the agreement?

The Stamp Duty is payable on the agreement value of the property or the market value whichever is higher