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What to consider while choosing your mortgage lender

Choosing your mortgage lender
Choosing your mortgage lender

What to consider while choosing your mortgage lender

Investing in a property is often one of the most important financial decisions that you will undertake during your lifetime. Real estate, as an asset class, will also form a major part of your portfolio. Often, we procure a mortgage loan to fund this purchase, this requires you to pay equated monthly instalments (EMI) which may span across a decade or more. It is very important to choose the mortgage lender you will be associated with over the long haul. Here is a list of pointers that will help you choose the right mortgage lender

Types of loans and interest rates offered

Information is easily accessible over the internet, thereby enabling us to gather enough information before we apply for a mortgage loan. A mortgage loan is the most common type of loan availed to fund a new home purchase. There are 3 aspects you need to evaluate before availing of mortgage loans, they are down payment, EMIs and repayment tenure. If you want to fund any other financial need, you may choose to avail of a loan against property, in the event of a situation where you are unable to arrange for the corpus by other means. The loan against property interest rates may differ from the mortgage loan interest rates. It is important to avail loan from a mortgage lender who offers the most competitive rates.

Interest rates and processing fees are the primary consideration while choosing a mortgage loan provider. Many websites enable the comparison of rates and fees across vendors, it is ideal to compare them to get a fair idea of the offerings and their relative competitiveness. There are various types of interest rates available for mortgage loans and loans against property, you must evaluate the type of interest rate that is most suitable based on the market interest rate cycle. Fixed-rate loans are ones where the interest rate does not change for a pre-specified period, floating-rate loans are ones where interest rates are determined as per the market interest rates. Hybrid loans are a combination of both these types of interest rates. Explore the various products offered by Standard Chartered to align your requirement with the right mortgage product.

Loan servicing by lenders and charges applicable

While the mortgage loans and loan against property features are standard across all financial institutions, how loans are serviced by the lenders may differ. Loan servicing refers to the administration aspects, the financial institution should have the reputation of providing effective and timely service to customers from the time you apply for a mortgage loan or loan against property to the time it is disbursed and completely paid off. Reminders for monthly payments, provision of regular loan statements, accurate record of balances and payments, following up on delinquencies efficiently are some of the loan services that the mortgage lender should provide efficiently. Standard Chartered has over the years built a reputation of offering best-in-class services to its customers. You may explore the plethora of mortgage products and related services offered by us by clicking here.

Earlier, the foreclosures of loans attracted a penalty, later, as indicated by RBI, this penalty was lifted, now foreclosing of a mortgage loan before the scheduled tenure will ensure that you complete your obligation well before time and avoid any added expenses. Foreclosing your loan can also help you in improving your credit score. A credit score is an important criterion for availing of loans, with an improved score, you will be able to seamlessly avail of loans in the future at competent rates.

Do not get carried away by short term sops

To attract more applicants, many financial institutions may offer discounts on processing fees or may not charge additional costs. Understand the terms and conditions applicable on such sops, evaluate the long-term aspects. Some lenders may even push loans that may sound attractive, but may not be in your best interest. Always approach a professional mortgage lender who is transparent with their dealings and has a long-standing reputation in the business. You can approach our experts at Standard Chartered who can help you choose the product that is best suited for you. Read through the brochure to get a deeper understanding of the process, charges and details about the mortgage loan /loan against property products.

Trust, transparency and best-in-class service are the most important criteria for choosing the ideal mortgage loan or loan against property, apart from competent interest rates. Ensure that you explore the range of products across lenders and choose the one that best aligns with your requirement. If you need help in gaining insight on the right product for your set of requirements, you can reach out to experts at Standard Chartered.

Disclaimer

The views expressed in the article are those of Standard Chartered Bank (“SCB”) and do not constitute financial, professional or other advice. SCB, including its Directors, Officers or Employees shall not in any event be liable for any damages or injury arising merely from your reliance on any information provided here. Each bank / financial institution will have its own processes/ fees/ charges and any information contained in this Article is only indicative. Before placing any reliance on any information contained or views expressed in this Article, we would request you take all steps necessary to verify the correctness thereof. The information contained in this Article is only indicative. Each Standard Chartered Bank Product has its own terms & conditions and should be referred to in entirety. We request you to kindly visit “sc.com/in” or visit your nearest Standard Chartered Bank Branch or call on our Customer Care numbers for more details.