It's been said before that life happens in a home. So buying a home is one of the most significant decisions you and your family will ever make. In addition, you want to look at all the details, especially concerning home loans.

If you're planning to take a home loan, do due diligence — after all, it's a commitment that will span years until you can repay the entire loan amount. However, there is a lot to cover when availing a loan. Recognising that here, we have outlined the top five things you need to know before getting a home loan.

Calculate the Home Loan EMIs

Before you finalise your home loan, calculate the equated monthly instalments (EMIs) you'll be required to pay. These payments are the financial commitments you'll need to meet regularly and hence it's crucial to plan accordingly.

Today, most banks offer user-friendly housing loan calculator on their websites. These tools empower prospective homebuyers to calculate their EMIs based on the interest rate, loan tenure, and loan amount.

Take an Interest in the Interest Rate

The interest rate levied on your home loan is a critical factor impacting your overall financial commitment to repay the loan. Since home loans are typically long-term loans, it’s important to take note of the interest rate that the bank is offering you.

The housing loan interest rate is based on the RBI repo rate, known as the Repo Rate Linked Loans, usually benefit you in the long run. This is because, if the RBI decides to cut the interest rate in the future, the benefit is passed on to you — the customer.

Customer can choose from Fixed or floating interest rates as suited to them & manage their home loans effectively.

Look at the Loan Application Process

The loan application process is your first step toward becoming a homeowner. Being able to apply for your home loan in a hassle-free and convenient manner is crucial, as it can remove much of the stress associated with the process. It’s best if the process can be completed online along with personalized home service from the sales team, giving you a smooth and seamless experience. You shouldn't have to spend hours completing paperwork or running from one office to another. The digital infrastructure should prioritise customer-friendliness, enabling you to apply for a home loan from the comfort of your own home.

Moreover, look for added perks that enhance your home loan application experience by generating a sanction letter instantly. For example, Kotak Mahindra Bank offers the convenience of receiving a sanction letter within just 10 minutes by completing the loan application online. This industry-leading turnaround time to get the sanction letter moves things swiftly in your home-buying journey.

Review for the Associated Charges

While getting a home loan, understand the associated charges that come with it. Many lenders impose various charges, so transparency is critical. You should be aware of what you're paying for and why. For instance, one common charge is the processing fee, which is often levied when you apply for a home loan.

However, some banks go the extra mile to provide relief in such areas. Kotak Mahindra Bank understands the importance of making your home loan journey cost-effective. By token of that, the bank reduced the processing fee by a substantial 50% for digital applications, putting money back in your pocket.

Check What Documents Are Required

Documentation is a crucial aspect of the home loan application process. So, have all the necessary documents ready to ensure a smooth and hassle-free approval process. Here's a quick list of documents typically required for a home loan application in India.

Today, banks have simplified the documentation process by making it digital. Their only ask is to ensure that you have these documents ready.

Securing a home loan is a significant step towards owning your dream home. Look at all the things you need to know, apart from the things we have mentioned. You should check the eligibility criteria, the lender's reputation, different types of home loans, and so on. Acquainting yourself with these things ensures you're well-informed to make the right call and choose the right home loan.

At Kotak Mahindra Bank, we are committed to simplifying the home loan process, providing transparent terms, and offering competitive rates to help you realise your dream of having a place to call your own.

About Kotak Mahindra Bank

Established in 1985, Kotak Mahindra Group is one of India's leading financial services conglomerates. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group's flagship company, received a banking licence from the Reserve Bank of India (RBI), becoming the first non-banking finance company in India to convert into a bank — Kotak Mahindra Bank Ltd.

The Bank has four Strategic Business Units – Consumer Banking, Corporate Banking, Commercial Banking, and Treasury, which cater to retail and corporate customers across urban and rural India. The premise of Kotak Mahindra Group’s business model is concentrated in India, diversified financial services. The bold vision that underscores the Group’s growth is an inclusive one, with a host of products and services designed to address the needs of the unbanked and insufficiently banked. As of 30th June 2023, Kotak Mahindra Bank Ltd has a national footprint of 1,788 branches and 3,047 ATMs, and branches in GIFT City and DIFC (Dubai). For more information, please visit the company’s website at https://www.kotak.com/.

This article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind for the completeness or accuracy of the material and articles contained in this Article. The information contained in this article is sourced from empanelled external experts for the benefit of the customers, and it does not constitute legal advice from the Bank. The Bank, its directors, employees, and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.

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