Home Loan Traps: Beyond Low Rates, Hidden Costs Can Empty Your Pockets

• Don't just focus on low interest rates; the fine print hides significant charges like processing, legal, valuation fees, stamp duty, and registration.
• Early loan repayment (prepayment) can incur penalties, especially for fixed-rate loans; understand that banks might keep EMI same and reduce tenure, but you can opt for lower EMIs.
• Changing interest rates (conversion) and balance transfers to other banks involve hidden fees (0.25%-0.5% of outstanding loan) that can negate expected savings.
• Late EMI payments lead to penalties, bounce charges, and damage your credit score; use auto-debit to avoid these issues.
• The CERSAI charge registers your property's loan in a central system to prevent fraud; ensure its update post-repayment for future transactions like selling or taking another loan.

Why It Matters: Home loans involve many hidden costs beyond interest rates; read fine print to avoid financial trouble.