A Bank Charge is one of the charges that the borrower have to settle when getting a home loan. Depending on the bank and the type of loan being applied for, it is generally 2.00% to 3.50% of the total home loan amount.
Here's a sample of the usual items that may comprise bank charges, as well as the estimated percentage of each item.
Real Estate Mortgage
Bank Charges Details | Estimated Percentage |
Registration and Handling | 1.18% |
Documentary Stamps | 0.75% |
Notarial Fee | 0.07% |
Processing Fee | 0.25% |
Insurance | 0.57% |
*Appraisal Fee (if not paid yet at the time of loan application) | 0.35% |
Total | 3.17% |
Construction Loan
Bank Charges Details | Estimated Percentage |
Registration and Handling | 1.26% |
Documentary Stamps | 0.75% |
Notarial Fee | 0.13% |
Processing Fee | 0.34% |
Insurance | 0.77% |
*Appraisal Fee (if not paid yet at the time of loan application) | 0.18% |
Total | 3.43% |