Q: What is a Valuation?

A: A valuation process is undertaken to ascertain the fair market value of a property. Factors that form vital inputs for a valuation would be maintenance, quality of construction, location, the infrastructure of the area, the nature of the property, whether freehold or leasehold, if leasehold then the period of lease etc. A valuer would normally adopt two or three different techniques separately to determine the property value and then compare the results to arrive at the correct value.

Q: What Is Leasehold Property?

A: Leasehold Property is property leased to a lessee for a stipulated period of time. The Lessee pays lease premium and annual lease amount as fixed by the Lessor. In these cases the Land ownership rights remain with the Lessor and a prior sale-permission is normally required if you plan to transfer the property.

Q: What is Freehold Property?

A: Freehold property is property for which ownership rights of Land is given to the purchaser for a price and he is not required to pay annual Lease Charges. Freehold properties can be registered and/or transferred in part, which is not possible in the case of Leasehold properties.

Q: When can an individual apply for a Home Loan?

A: An Individual can apply for a Home Loan even before he/she has selected the property. The loan amount would be sanctioned, based on his/her repayment capacity, which will help the individual decide on the budget and plan the buying of the house.

Q: Can One Repay the Loan amount ahead Of Schedule?

A: It Is Possible To Repay A Loan Ahead Of Schedule. A Form Of A Penalty Termed As A Pre-Payment Penalty Is Payable To Certain lenders.

Q: What is a fixed rate loan?

A: A Fixed rate of interest is one where the rate charged by the Home Loan Companies on the loan is constant over the tenure of the loan.

Q: What is a variable rate loan?

A: A variable rate is one where the rate charged by the Home Loan Companies on your loan keeps changing with respect to the rates in the market over the tenure of the loan.