Buying a home is a big milestone - and for most of us, it’s powered by a home loan. While home loans offer attractive tax benefits on interest and principal repayment, many borrowers overlook the hidden charges that increase the true cost of your loan. 

🔍 Here’s what most banks don’t tell you upfront 👇

💰 Hidden Charges on Home Loans

1️⃣ Loan Processing Fees: Charged for verifying income, credit score, and application - 0.5% to 1% of loan amount.

2️⃣ Credit Report Charges: Lenders access detailed credit histories beyond the free score you see.

3️⃣ Documentation Fees: For preparing agreements, verifying documents - often ₹1,000 - ₹5,000.

4️⃣ Legal Verification Charges: Lenders legally vet your property’s records before approving the loan - ₹5,000-  ₹20,000.

5️⃣ Property Valuation Charges: Expert valuation of your home construction/buying cost based on land and property specs.

🔄 Charges During the Loan Tenure

6️⃣ Conversion Fees: Switching to a lower interest rate? That comes with a cost.

7️⃣ Copy of Documents: Need sale deed copies during tenure? Extra charges apply.

8️⃣ Prepayment Penalties: Especially with fixed-rate loans or special schemes.

9️⃣ Refinancing Costs: Want to shift your home loan to another bank? You may pay exit fees.

🔟 Document Retrieval Charges: Pay to get back original property documents after loan closure.

⚠️ Why You Must Be Cautious

❗ Hidden costs can increase your EMI burden

❗ You end up paying interest on hidden charges

❗ Actual usable loan amount may be less than sanctioned

🎯 Pro Tip from a Financial Advisor:

Always ask your lender for a complete charge breakdown. And if you’re planning your finances smartly - pair your loan with mutual fund SIPs to balance out long-term wealth creation and liabilities!

📞 Need help with smart loan planning? Contact Jogimutt