So, you're ready to buy your first home — exciting! 🎉
But before you say yes to that loan, know this: banks and lenders often don’t tell you everything upfront.
At Vizzve Finance, we believe in full transparency.
Here’s what banks don’t mention, and what you must know before signing your first home loan.
😮 Hidden Costs Banks Don’t Highlight
1. Processing Fees Are Just the Beginning
Banks advertise low interest rates but don’t always mention:
🧾 Processing fees (0.5%–2% of loan amount)
📄 Legal & technical verification charges
🏢 Valuation fees and stamp duty
💡 Vizzve Tip: Always ask for a Loan Estimate Sheet to see all upfront charges.
2. You Might Not Get the Advertised Interest Rate
Banks flaunt a 6.75% home loan rate… but that’s usually for:
High-income professionals
Women borrowers
Salaried government employees
Others may end up with 7.5–8.25%, depending on credit score, income, and loan amount.
✅ Vizzve Finance shows real interest rates based on your profile — no bait & switch.
3. Interest Rate Type (Fixed vs. Floating)
Most loans are floating rate, meaning:
Your EMI can increase unexpectedly
No one tells you how often it’ll change
Banks benefit when repo rates go up
🔍 Ask for reset frequency and compare fixed vs. floating before choosing.
4. Prepayment Isn’t Always Free
Though RBI says banks shouldn’t charge prepayment penalties on floating-rate loans, many still:
Penalize early closure of fixed-rate loans
Limit how much you can prepay in a year
Delay processing of closure requests
💬 Vizzve Advice: Get clarity on prepayment clauses and foreclosure rules.
5. Your EMI May Start Before You Move In
If your property is under construction, the bank may ask for pre-EMIs — interest-only payments until possession.
But here’s the catch:
You start paying without living there
These don’t reduce your principal
Total interest burden rises
🔧 Consider a ready-to-move-in property if your EMI budget is tight.
6. Insurance Is Often Forced On You
Lenders may bundle loan insurance or property insurance and make it sound mandatory. But:
Most aren’t legally compulsory
You can choose your own policy
These can inflate your loan cost by ₹30,000–₹1 lakh+
🛡️ Ask: “Is this insurance mandatory by law or suggested by the bank?”
7. Loan Tenure Traps
Choosing a 20–25 year tenure may feel safe, but:
You end up paying double or triple the principal in interest
Banks earn more from long-term customers
A 15-year tenure saves lakhs in interest
📉 Vizzve’s EMI calculator helps you test multiple tenures to choose what’s best for your income & goals.
🛡️ Why Choose Vizzve Finance for Smarter Home Loans?
Unlike traditional lenders, we give you:
💰 Real-time interest rate matching
📲 Transparent home loan comparison tools
🤝 Prepayment & part-payment flexibility
🔍 Full cost breakdown before you apply
👨💼 Dedicated advisors who explain everything in plain language
🎯 Whether it’s your first house or your next one, Vizzve ensures your loan doesn’t become a liability.
💬 FAQs
1. Can I negotiate my home loan interest rate?
Yes! Especially if you have a strong credit score (750+). Use Vizzve’s rate comparison to find the best match.
2. Is home loan insurance compulsory?
No. Only property insurance may be required. You can choose your provider.
3. What’s better: fixed or floating rate?
Floating rates may start lower, but are riskier. Fixed rates offer stability — Vizzve helps you compare both.
4. What happens if I miss an EMI?
You may face late fees and credit score damage. Always budget for 2–3 EMIs in an emergency fund.
🏁 Final Words: Don’t Just Sign. Understand.
Buying a home is one of life’s biggest milestones — and loans can either support your dream or turn into a long-term burden.
With Vizzve Finance, you get:
✅ Transparency
✅ Clarity
✅ Control
Let’s make your first home loan a smart one — not just an emotional one.
Published on : 17th July
Published by : SMITA
www.vizzve.com || www.vizzveservices.com
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed.