Home Loan Hidden Charges: 7 Fees That Can Empty Your Pockets, Save Money Now!

• Processing fees, ranging from ₹5,000 to ₹15,000, are charged by banks for application evaluation and document verification; these can often be negotiated.
• Prepayment penalties apply to fixed-rate and hybrid-rate home loans (up to 4% of outstanding principal), though floating-rate loans are exempt per RBI rules.
• Interest rate conversion charges (0.25% to 0.5% of outstanding loan) are levied for switching between fixed and floating rates.
• Balance transfer costs include new processing, legal, and valuation fees, plus potential foreclosure penalties from the old lender, making it profitable only if interest rate difference is significant.
• Late payment charges can be substantial (up to 3% or more of outstanding EMI) if payments are delayed beyond the grace period.

Why It Matters: Be aware of 7 hidden home loan charges like processing fees, prepayment penalties, and forced insurance to save money.