How to Switch your Home Loan

When it comes to home loans, interest rate is everything. Bank charging you too much? We have the solution for you. If your bank has started charging better rates for new customers or if you have found a bank that has better rates, it would be best to switch home loans.  It is important that you check once or twice a year to find better interest rates and switch home loans.

Rather than finding a new lender, find out whether your current one has new rates that are better for your needs. If your credit report is good and you have made your payments on time, most banks would rather keep you but usually on payment of a conversion fee. After you pay this fee, you rates are lowered. Even though this means paying an extra fee, it lowers your payment in the long run and will serve you well in the long run.

If your bank refuses to let you change your rates and you feel you could get a better rate elsewhere, look out for a better rate from other banks. But be sure to do your homework and find out all there is to know about the other bank’s rates. That being said, shifting a loan based on rates is a good idea only for those who have a long time left on their loan. If you are almost done paying back your loan, it does not make much sense to go through the hassle of shifting in the last minute.

Depending on your finances, it might be a better option to switch to a floating rate loan on which as per RBI directive, no penalty can be charged while switching. It is very important to calculate costs and find out whether one will actually save money by switching.

The procedure to be followed:

1. To begin with, apply for an NOC (No Objection Certificate) from your current back, along with a letter that states how much of the loan has to be paid back.

2. Apply for a new loan at the new bank. Make sure your documents are in order. Once the bank has checked your credit reports and documents, they will send their approval.

3. Submit this letter of approval, along with an NOC from the builder/ society if needed to your current bank.

Why invest in Pune?

In the last year or so, Pune has quickly emerged as one of the best cities for investment in terms of real estate. The rapid development industrially and in terms of the IT and manufacturing sector has boosted real estate construction and availability, both residential and commercial. The establishment of the city as a centre of learning and education is another major factor in the rise of the real estate sector in the city.

Investing in real estate is always a good idea. Investing in real estate in Pune, however is an even better idea. Here’s why:

1.     Rate of Appreciation:  In the suburbs and the newly developing outskirts of the city, the ROI is increasing. Even if it drops in the city, the nature of real estate is such that it evens itself out over time. Owning real estate in Pune is sure to give you rich rewards.

2.     Educational Centre: Pune has been long established as a centre of education and learning, attracting students from all over the country. This increases the need for rentals and is perfect for those investing in a second home or investing for long term gains.

3.     Employment: The rise of the IT sector as well as the manufacturing and industrial sector has caused an exodus of people into the city for jobs. In the same way as the above point, it is a boost for real estate in areas like Hinjewadi, Kharadi, etc.

4.     Developing Infrastructure : Pune as a whole has had rapid development over the last few years, especially in the suburbs like Baner and Aundh. This increase in commercial spaces and malls has made the city more attractive to outside buyers and has made the city a good investment choice.

5.     Affordable residential spaces: Pune is still a developing city. It has not yet reached the size, development or status of other major metropolises. This makes the rates of real estate more reasonable and affordable for the average middle class Indian. This is true about both renting and buying.

Why is it always a good idea to invest in real estate?

The global market is an unstable investment when compared to the stability of investing in real estate. Despite the ebb and flow of the market, real estate is always a good place to put your money. There are various factors that justify this statement.

1.     It is a time of discounts and great offers in real estate and home loans as well! It is the time to invest, especially since it is currently a buyer’s market.

2.     The stability of the real estate market has been long established. Both the share and equity market fluctuate many times within a day and can wipe out your life savings in an hour. The prices in the real estate market change slowly and over a period of time. Even if the value decreases, it is over a long period of time, which makes it a better investment overall in the long run.

3.     The development in Pune and the plans to build a metro automatically make the real estate market more lucrative. While the city is still developing and growing, it is the perfect time to invest.

4.     In Pune specifically, there is always demand for homes on rent. Investing in a second property is sure to reap rich rewards because of the influx of students and IT professionals.

5.     The home loan interest rates have gone down and continue to get better. With options like EMI in home loans, getting that dream home is that much easier.

6.     Unlike other markets, the real estate market moves in a cycle. It is far more predictable without requiring the amount of attention that the stock market requires. An investment in the real estate market, no matter where in the cycle it is at then, will bring good returns in the long run.

7.     The real estate market has a tangible, physical aspect that is not possible with most other markets. One can live in it or rent it out, but it can be touched. It has a physical presence.

Tips for an Eco-friendly Diwali

The festival of lights is around the corner. Every year, the celebration of this festival is done without thinking of the negative effects on the environment and animals. From the pollution from crackers to the overuse of plastic, there are various practices that cause adverse harm to the environment. It is important that we remember while celebrating the festival to think of the environment and protect it by various small practices and differences in what we usually do.

1.     Stick to simple earthen oil diyas with no lead based paint on them. Avoid candles as they waste a lot of energy and affect air quality.

2.     Switch off electric lights whenever possible to save energy.

3.     Make your rangolis with natural products such as rice flour, turmeric, coffee powder, kumkum, flowers and eco-friendly colours.

4.     Re-use cardboard boxes and bags instead of buying more of the same and causing more litter.

5.     Buy eco-friendly gifts such as bags made of jute, clothes made of natural products, etc.

6.     Avoid using (plastic) wrapping paper and use newspaper and other such materials that are eco-friendly.

7.     Avoid bursting crackers to prevent air and noise pollution. The pollution causes asthma, headaches and other such health problems. Animals in the vicinity are also traumatized by the sound and affected by the air pollution.