What is Mortgage Fees on home loan and how its calculated ?

POSTED BY Raja ON March 3, 2014 3:16 pm COMMENTS (2)

I am taking a home loan of 17 L for which the bank is charging a processing fees of 0.5% of the loan amount and a mortgage fees of 0.2% of the loan amount. What is this mortgage fees? and how is it calculated? To whom does this money go? Can I demand a receipt for the same?

NOTE: At the time of disbursal, bank will deduct the mortgage fees from the loan amount and only disburse the balance amount.

2 replies on this article “What is Mortgage Fees on home loan and how its calculated ?”

  1. roshan says:
    March 4, 2014 at 11:37 am

    Hello Raja,

    Mortgage fees vary from state to state. If i am not mistaken in Karnataka it is 0.1% of the loan amount.

    Thanks,
    Roshan

    Reply
  2. ashalanshu says:
    March 4, 2014 at 3:13 am

    Dear Raja, the mortgage fee is paid to the state govt. for registration of mortgage deed. So bank is recovering it from you and paying to state Govt.

    Thanks

    Ashal

    Reply

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