Deal with the Prob­lem

Consumer Voice - - Home Loans -

There are two ways to deal with the prob­lem of dif­fer­en­tial rates. One, you can switch the loan to a bank of­fer­ing a lower rate. This is easy now as pre­pay­ment penalty on float­ing-rate home loans has been abol­ished. The new bank will charge only a pro­cess­ing fee of 0.5 per cent to 1.00 per cent of the out­stand­ing loan. Some banks may even waive the fee if you bar­gain hard. Two, you can switch to the lower rate be­ing of­fered to new cus­tomers by pay­ing a small fee. Most banks of­fer this fa­cil­ity to re­tain cus­tomers.

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