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Your new home is now just 10 quick steps away!
Step 1: Identify the property you want to buy
Identify the proprty
You must carefully consider several factors before finalizing the property that you want to purchase:
  • Type of property i.e. apartment in a large project v/s constructing a house on your own plot.
  • Credibility and track record of the builder.
  • Quality of construction and amenities available vis--vis price.
  • Completion time.
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Step 2: Understand the property price and arrange finance
property price
Post identification of property that you want to purchase, it is necessary to understand the fully loaded property price. This would help in planning for the financial arrangements for the purchase.

Apart from the basic price (per square foot rate) of the flat quoted by the builder, the additional charges can be on account of Value Added Tax (VAT), Service Tax (ST), Maintenance Charges, Deposit for Electricity and Water, Registration and Stamp Duty, etc. Please ask the builder to provide details of all the above charges so that you can arrive at the total price of the flat and make arrangements for finance accordingly.

Items such as Car Park are optional and have to be added to arrive at the final price. The table provided below will assist you in planning your finances.
Details Amount (Rs.)   Details Amount (Rs.)
 1. Basic price   Own funds immediately available
2. Value Added Tax (VAT)   Own funds available later (FDs, land sale, etc.)
3. Service Tax (ST)   Loan required
4. Electricity & Water Deposit      
5. Maintenance charges      
6. Registration & Stamp duty      
7.Optional (Car park, etc.)      
8.Others      
Total   Total

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Step 3: Apply for a loan
apply for loan
Applying for a loan with Home First is very simple & convenient. Just provide the documents as listed below and we would ensure hassle free processing of your Home Loan application

DOCUMENTATION
DOCUMENT DETAILS
Identity Proof (Any one) Pan Card
Passport
Voter Id Card
Driving License
Identity Card issued by Employer
Address Proof (Any one) Passport
Electricity Bill
Telephone Bill
Ration Card
Lease Agreement
Photographs 1 passport size photograph
Income Proof Salaried:
  • Latest 3 months salary slips
  • Form 16 (latest year)
  • ITR (latest year)
Self-Employed:
  • ITR, P&L and Balance sheet for latest 3 years OR
    Proof of business (3 years)
Bank Statements Latest 6 months
Note: Applications are currently accepted only for the following approved projects
 
Some of the queries you may have regarding the loan are answered below:

1. What % of the property price can be financed?
Home First can provide finance up to 90%* of the property value. The balance amount has to be arranged by you from other sources such as your savings, etc. (*For loan amounts less than Rs. 20 lakhs)

2. What will be the duration of the loan?
Home First offers loan tenure of 1 year to 20 years. If you opt for a long tenure, you can get the advantage of a lower monthly outflow in the form of EMI.

3. What is the rate of interest and other charges?

INTEREST RATE, FEES AND CHARGES
Housing Loans
Category Loan Amount Slab Fixed Floating One Time Processing Fees
Min Max Min Max
Salaried Upto Rs. 5 lakhs 15.50% 16.00% 12.90% 14.00% Rs. 6500 + Service Tax*
  Above Rs. 5 lakhs 15.50% 16.00% 12.90% 14.00% Rs. 8500 + Service Tax*
Self-Employed Upto Rs. 5 lakhs 16.50% 17.50% 12.90% 15.00% Rs. 7500 + Service Tax*
  Above Rs. 5 lakhs 16.50% 17.50% 12.90% 15.00% Rs. 10000 + Service Tax*
 
Home-Equity/Loan Against Property
Salaried       16.50% 18.50% Rs. 10000 + Service Tax*
Self-Employed       16.50% 18.50% Rs. 12500 + Service Tax*

*Service Tax @ 12.36% HFFC PLR - 14.5% Wef: 1st Feb' 2013

Note:
- For Home-Equity/Loan Against Property cases, legal and technical charges will be charged in addition to above fees
- Stamp duty applicable for Memorandum of Equitable Mortgage will vary depending on location and will be charged for all cases in addition to above fees
- Other Charges


4. Will I be charged any fee for early pre-payment?
No prepayment fee will be charged byHome First for early pre-payment of the loan (both entire and partial).

5. Who can be co-applicants to the loan?
All co-owners of the property have to become co-applicants to the loan. A person who is not a co-owner can also become a co-applicant to the loan.
 
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Step 4: Credit appraisal and loan sanction
loan sanction
Home First will consider the applicant and co-applicant’s income, assets, liabilities, credit history (CIBIL), qualifications and other factors to arrive at the decision to approve the loan.

The appraisal may involve visits to the residence and office, as well as personal discussions with the applicant and co-applicants.

If the loan is approved, a sanction letter will be sent to you. You have to return a signed copy of the sanction letter to acknowledge acceptance of the same.
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Step 5: Down payment for the loan
downpayment
Home First may sanction up to 90% of the property price depending on the credit appraisal. The balance amount, referred to as Down Payment, has to be paid by you directly to the builder.

The actual % of loan sanctioned and the balance portion will be specified in the sanction letter. You have to make the down payment to the builder and hand over the payment receipt to Home First.

Other documents that need to be completed at the time of making down payment are:
  1. Construction Agreement.
  2. Agreement for Sale.
These documents have to be handed over to Home First in original in order to commence disbursal of the loan.
 
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Step 6: Construction phase and Pre-EMI-interest payments
construction phase
During construction phase, Home First will disburse funds to the builder on your behalf. This will be based on the payment requests made by the builder as per the construction schedule.

Home First will charge only interest on the amount disbursed as loan, during the construction phase. Interest will be billed on a monthly basis and the billing statements will be sent to you before the 1st of every month. Payments have to be made before the 4th of each month. These interest payments are referred to as Pre-EMI-Interest payments.

EMI payments will start only after completion of the project and registration of the property.

 

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Step 7: Registration, possession and EMI payments
registration
Once the construction is complete and the property is ready for possession, the SaleDeed has to be executed and registered. This ensures transfer of ownership rights of the property from the builder to the buyer. The original sale deed after registration has to be handed over to Home First. This indicates the mortgage of the property with Home First. The sale deed can be executed only after the full consideration for the property has been paid to the builder either through the buyer’s own funds or loan.

Repayment of the loan through Equated Monthly Installments (EMIs) commences from the 4th of the subsequent month after registration. The EMIs will be as per the terms governing the transaction as mentioned in the loan agreement. Try our EMI Calculator to find out the EMI payable for any combination of loan amount, interest rate and tenure.

Electronic Clearing Service (ECS) mandate, authorizing Home First to debit your bank account on a specified date for payment of EMIs, will be collected from you.
 
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Step 8: Pre-payment of loan
Prepayment
Home First allows partial as well as full pre-payment of the loan after registration when regular EMIs have commenced.

Partial pre-payment: You can make a partial pre-payment and thus reduce your outstanding loan amount and interest outflow. Home First will give you the choice of:
  1. Reducing your EMI proportionate to the reduction in loan amount. The tenure will remain the same as your original tenure in such cases.
  2. Reducing your tenure and keeping the EMI the same.
Full pre-payment:  You can make a full pre-payment and repay the entire loan outstanding. This will ensure that the loan is closed and the loan agreement is terminated. All original documents pertaining to the property collected from you during the loan approval process will be returned to you.

Home First will NOT charge any pre-payment or closure charge for Partial or Full Pre Payment.
 
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Step 9: Property and credit insurance
credit insurance
To safeguard yourself from loss to the property by fire and other hazards, it is advisable to take a Property Insurance. This would help you recover your losses to the property in the event of an untoward incident. A copy of the insurance policy has to be submitted to Home First. All General Insurance companies offer property insurance.

Credit insurance enables the loan to be repaid by the insurance company in the case of any unfortunate occurrence to the borrower.

Ask your relationship manager for more details on insurance products.
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Step 10: Document checklist
Document Checklist
We provide below a checklist of documents (not exhaustive) that you have to complete during the process of purchasing your property.
Sr. No. Document Process
1 Application form To be submitted to Home First for loan processing
2 Processing fee cheque* To be given to Home First
3 Sanction letter Issued by Home First to the borrower if loan is sanctioned. Original to be retained by borrower. Copy to be signed and given to Home First
4 Agreement for Sale To be executed between buyer and builder. Original to be handed over to Home First
5 Construction Agreement To be executed between buyer and builder. Original to be handed over to Home First
6 NOC No Objection Certificate to be provided by builder
7 Payment receipts from builder All payment receipts to be handed over in original to Home First
8 Sale Deed To be executed between builder and buyer and registered. Registered document to be handed over in original to Home First.
9 Loan Agreement To be executed between Home First and borrower/co-borrowers. A copy will be given to borrower on request
10 ECS mandate/PDCs To be provided by borrower to Home First for repayment of loan


*NOTE: Processing Fee Cheque favouring "Home First Finance Company India Private Limited"
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