When you plan to buy a house by availing a home loan, the biggest cost component you are worried about is the interest amount. But apart from interest charges, you will have to pay for a plethora of other charges as well. Here’s a list of fees banks levy on home loan borrowers:

1. Registered Office & Corporate Office: Aspire Home Finance Corpora on Ltd., Mo lal Oswal Tower, Rahimtullah Sayani Road, Opposite
Parel ST Depot, Prabhadevi, Mumbai- 400025
7 Home Loan Charges You Should Know
When you plan to buy a house by availing a home loan, the biggest cost component you are worried
about is the interest amount. But apart from interest charges, you will have to pay for a plethora of
otherchargesaswell.Here’salistoffeesbankslevyonhomeloanborrowers:
1.Applica onfees
This fee is charged by the bank for processing your applica on. It will be charged upfront
irrespec ve of the fact that whether your loan applica on is accepted or rejected. It is non-
refundableandcangoupto1%oftheloanamount.
2.Processingfees
This fee is charged by banks to verify your documents as the process involves people effort and legal
charges.Theprocessingfeevariesfrombanktobank.
3.Legalfees
Generally, external lawyers are appointed by financial ins tu ons to verify the documents
submi ed by you. The fee charged by the lawyer is passed on to you by the financial ins tu on.
However,forthoseproper eswhichhavealreadybeenapprovedbythebank,itmaynotchargethe
legalfee.
4.Memorandumofdepositof tledeed
When you avail a home loan you have to sign an undertaking sta ng you have deposited the
documents of the property with the bank at your will to secure financing from the bank.
Government levies stamp duty on this document to register the same and depending on the state
youarebuyingtheproperty.
5.Documentretrievalcharges
When you avail a loan you have to deposit all your documents for home loan such as the sales deed
and the sale agreement with the bank. The bank keeps these documents in a central safe repository
whichisgenerallymanagedbyathirdparty.Thecentralrepositorymaynotnecessarilybelocatedin
the same place as the bank branch. Therefore, when you close or pre-close the loan, the bank
chargesyoudocumentretrievalfee.
6.Prepaymentpenal es
Althoughnoprepaymentpenal esarechargedincaseoffloa ng-ratehomeloansbutthepenaltyis
levied on fixed-rate home loan. If you decide to make a prepayment towards your fixed-rate home
loan,youwillbechargedaprepaymentpenaltybythelender.
7.Switchingcharges
If you want to change from floa ng-rate home loan to fixed rate or vice versa, you will have to pay
switching charges. These charges vary from bank to bank and typically range between 1% and 2% of
theoutstandingloanamount.