By Chaitali Dutta
For my first pucca home at Surat, my residence mortgage was sanctioned by Yes Bank in March 2021 at 8.75% curiosity. In May 2022, it’s 9.78% and Yes Bank is just not permitting half pre-payment. My PMAY subsidy software id was generated in June 2021 and reached Stage 3 in Feb 2022. There has been no replace since then.
(1) Can I switch my residence mortgage to a different financial institution after getting the subsidy later this yr?
(2) Before getting the subsidy if I switch my mortgage to a different financial institution, shall I get the subsidy?
(1) It is evident that your software has not been rejected. You might write to [email protected], to know the explanation behind the delay. You are allowed to switch the mortgage to every other mortgage supplier. However, the primary financial institution will reverse the unutilised subsidy on your property mortgage. For the primary financial institution, a house mortgage switch is equal to a pre-closure of the mortgage.
(2) In case, you switch the house mortgage to a brand new lender, earlier than receipt of the subsidy beneath PMAY, then the steadiness excellent in your mortgage account will probably be taken over by the brand new lender, and your EMI will probably be calculated based mostly on the brand new tenure and rate of interest. Here, on this case, you’ll not be allowed to use for PMAY-CLSS, because the eligibility standards can be breached.
If the rates of interest rise, will my current automotive mortgage EMI improve?
If your automotive mortgage was taken on a floating fee foundation, with the rise in repo fee, your automotive mortgage rate of interest will even go up. You can improve the EMI (preserving the tenure identical) fairly than rising the tenure (preserving identical EMI). This will guarantee a decrease combination curiosity outgo.
Is it a good suggestion to take a financial institution mortgage and put money into shares which have decrease valuations now?
The curiosity payable on the mortgage might typically wipe out the positive aspects in speculative investments equivalent to investing in shares. Then there will probably be tax payable on the capital positive aspects on the fairness funding. I counsel you to build up cash after which get into fairness markets in a deliberate means.
The author is founder, AZUKE Personal Finance Advisory (www.azukefinance.com). Send your queries to [email protected]