While thinking of buying a house, it is quite natural for your next thought to be about applying for a home loan. To afford their desired homes, most people take the support of home loans. These loans cover about 80-90% of the property expenses, depending on the property value. Once the house is bought, borrowers have a repayment tenure of 20 years that the lenders provide in which they have to repay the loan.
Now, it is common knowledge that there are certain charges that lenders levy on these loans, such as home loan processing fees. However, many are unaware that even buying property includes certain charges other than the property price. It is because of this misunderstanding that they might face problems in the future. It is important to be aware that there are other charges apart from just the property price that are included while buying a house. You need to include all these charges while calculating the overall cost of a property purchase.
So, take a look at the additional charges that might be involved when you are buying a house:
- Brokerage fee
People often take the help of a middleman or a broker to find a house. Brokers usually charge around 2-3% of the total amount, which is known as the brokerage fee. Some brokers might even charge a fee costing more than 3%, which is why it is best to clear out all these details before starting the search for a house.
PLC stands for Preferential Location Charge, which is the fee that is needed to be paid if you are looking out for a certain layout while booking a unit. While this depends on the builder too, premium projects generally set a high PLC. For instance, if you are going for a penthouse or villa with a lake view, it is quite possible that PLC would be very high.
- Stamp duty
Stamp duty is a fee that has to mandatorily be paid to the state government in order to get the house registered under your name. Stamp duty is generally 5-7% of a property’s market value. Therefore, if the property in question is worth Rs 2 crore, the stamp duty would come up to Rs 10 lakh.
If the property you are planning on buying is under construction, it will be charged with GST (Goods and Services Tax). The GST on an under-construction property is charged at 12% which is payable to the government.
- Parking space charges
India is a country that faces huge issues with parking, especially if you are living in one of the metropolitan cities. Buying a house will not guarantee a free parking spot, this privilege has to be paid separately. The price for the parking space will depend on the size of the parking slot as well as the area you are living in.
So, while checking for the home loan fees and charges, do keep in mind to also check for the above-mentioned charges while buying a house. This will help in keeping a sound financial plan for your expenses.