Is There a Penalty for Early Closure of a Housing Loan?
Is There a Penalty for Early Closure of a Housing Loan?
All banks apply a penalty amount for the early closure of housing loans. Since this penalty is included in all bank contracts, it is generally not refunded by consumer courts. There is nothing consumers can do about the early payment penalty, which is approximately 2 percent. Therefore, the loan repayment term should be well-defined when applying for a housing loan.
Can a House with an Ongoing Loan Be Sold?
There is no risk or problem for the seller when selling a house with an ongoing loan payment. However, for the buyers, there is a high risk because there is a mortgage annotation on the house title deed. Therefore, the bank debt must be paid off when purchasing a house.
