Buying a home involves many financial considerations. Some home buying expenses are one-time costs and others are ongoing commitments. In addition, there are other costs that you may not be aware of or that you may forget to factor into your calculations. Other Costs to be Aware of When You Buy is a checklist of additional expenses you will want to keep in mind when purchasing a home.

Homebuying costs

The Down Payment
A minimum down payment of 15% is required for a Normal Housing loan. The government offers Tax incentives for homebuyers. You should consult an investment or tax advisor regarding the value of these plans for your particular circumstances.

The Payment
A Home Loan Security is security for a loan on the property you own. It is repaid in regular monthly payments which are combined payments. This means that the payment includes the principal (amount borrowed) plus the interest (the charge for borrowing money).

Checklist of Additional Expenses
Possible Extra Costs After You Move In

Maintenance costs
You may want to start a separate maintenance fund - particularly if you're buying an older home - by setting aside Rs.5000 - Rs10,000 and adding to it regularly. This reserve can be used to cover the costs of anticipated or unexpected repairs or replacement of such things as the painting or household appliances.

Renovation costs
You may find an inexpensive home in need of repair. One general rule is that renovation always takes longer than, and costs more than, you think. This website has a lot of information on renovation - find out more or view our renovation stories.

How Much Can You Afford?
The shortest and best answer to that question is: it depends — on a number of factors. The most important are your gross household income, your down payment and the interest rate. Lenders also consider your assets and liabilities. Your own lifestyle and debt comfort zone also come into play.

If you understand these variables, you can examine all your options. You can make the best choice for you and even save money.

To help you estimate the maximum Loan you can afford, Sundaram Home Finance has developed an easy to use calculator. Affordability Calculator

Other Costs to be Aware of When You Buy
This is a list of possible extra costs involved in buying a home. Some of them are one-time costs and others, such as maintenance fees and property insurance, will be ongoing monthly expenses. The good news is that not all of these costs may apply in your circumstances.

Don't forget the tax: The % applies to new housing. However, there is a rebate, to a maximum of 2.5%,. There is FGHIJKL on resale housing

Is there a compulsory insurance for loans ? if so what is the cost

Property taxes: Taxes are always a certainty. ( for high value loan does SHFL add property tax instalments to the loan and repayment ???)

Property insurance: want the whole content on how it is connected to a housing loan.

Service charges: are there any????

Lawyer (notary) fees: Even a straightforward home purchase requires a lawyer to review the Offer to Purchase, search the title, draw up mortgage documents and tend to the closing details. Lawyers fees for a Housing loan and purchase range widely depending on the complexity of the deal but will probably be at least Rs.500.

Moving costs: Don't forget the cost of a professional moving company or a rental truck if you move yourself.

Renovation and repairs: A home inspection may indicate that the home needs major structural repairs. Don't forget to factor these costs into the price of the home.

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