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A written agreement from a lender offering a specified interest rate if the mortgage goes to closing within a set period of time (usually 3 months), subject to the legal and technical clearances and the creation of a valid and equitable mortgage over the property.

A ratio that signifies the percentage of the income that can be set aside for repayment of the loan under the assumption that 50% to 60% of the income is required by the person for his own provisions.

The effective rate of interest on your home loan might work out to be different from the rate announced by a bank/HFI. This could be due to several costs that are not made apparent initially. Some of these are processing or administrative charges that may be payable by a loan applicant [...]

A promise by one party to pay a debt or perform an obligation contracted by another if the original party fails to pay or perform according to a contract. The party that promises to do so is called guarantor.

It is the Gross Monthly Income of an individual as considered by a HFI to calculate his/her loan eligibility. For a salaried customer, GMI would indicate the monthly income on his salary slip, including any fixed income generated regularly from a fixed source. For self-employed professionals who are practising on their [...]

Also known as repossession of property, this is a legal process by which a lender or seller forces the sale of a mortgaged property because the borrower has not met the terms of the mortgage.

An option where the rate of interest remains fixed over the tenure of a loan after the final disbursement has been made. This is an ideal option for situations when you expect the rates of interest to go up in future. Hence, the fluctuation in the rates does not affect you [...]

The mortgage which is the primary lien against a property.

In this case, a customer has to just pledge the documents of title for a property with a HFI and he/she can get a loan against them. He/she is not required to get the mortgage registered.

An improvement that intrudes illegally on someone else’s property.