Home loan glossary

The fee charged by a lender to prepare loan documents, make credit checks, inspect and sometimes appraise a property, usually computed as a percentage of the face value of the loan. It is also known as mortgage origination fee.

In case of home loans, where the disbursement takes place as per the stages of construction of a property, the interest rate in the market may change during the tenure. Irrespective of the fact that you may either be under the fixed rate or the variable rate scheme, the new rate [...]

The Urban Land (Ceiling & Regulation) Act 1976 for the imposition of a ceiling on vacant land in urban agglomerations, for the acquisition of such loan in excess of ceiling limit, to regulate the construction.

An examination of municipal records to determine the legal ownership of a property which is usually performed by a title company.

A statement which confirms that the current owner legally holds the title to the house.

It is the right and interest over a property evidencing the ownership.

The term representing the number of years for which a loan is given. The loan amount gets amortised over the period of the loan.

Plinth area and proportionate share of common areas taken together.

A statement indicating the outstanding loan amount, the amount paid by a borrower, the appropriations made towards interest and principal, etc., at the end of a financial year.

The duty/fee payable on the different instruments/documents as per the prescribed rate. This differs from state to state. The adequacy of stamp duty should be ensured to make a document valid and enforceable.