MYTH-69. “DON’T WORRY ABOUT THE LOAN AS WE HAVE TIE-UPS WITH BANKS.”
1. Builders do have tie-ups with banks, but this is no way an endorsement for the project.
2. Even if the project has been approved, it is advisable for the buyer to hire the services of a legal expert to verify the authenticity of all the documents associated with the project.
3. A tie-up also does not promise the best home loan rate, and what it really means is that you are more likely to get a loan from those banks than with others.
4. However, for the best rates, you may still need to go to the bank branch to negotiate, instead of relying on the representative at the bank site, a person who may not even be from the bank.
5. You may also be told not to worry about the high home loan interest rates as ‘rates will come down soon’, but which may not really happen.
6. Plan your purchase according to the current interest rate, not on the expectations of a future rate cut.
7. Also, banks are aggressive in offering competitive rates to new customers, but are not so charitable once you take the loan, hence any subsequent drop in rates may not be passed on to you immediately.
8. So, it is better not to stretch your finances and plan it on the basis of a higher interest rate than the one you are currently paying.