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:

    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

  2. ashalanshu says:

    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

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