Check out some of the most common types of home loans available from banks and financial institutions: Home loan for purchase: Most commonly available, this type of loan is for purchasing a residential property, whether it is a resale home, a ready-to-move-in home or an under construction home. Home loan for construction: This loan is available only for construction of a house and is offered to those who own a piece of land. Home loan for renovation: This can be availed for making renovations or improvements to an existing home. Bridge home loan: This loan is availed by those who are looking to upgrade their homes to bigger or better ones. Such a loan helps meet shortage of funds that arises due to time lag between sale of existing home and purchase of new one. Step up home loan: Designed primarily for young salaried professionals, this home loan helps you avail a bigger amount as compared to your eligibility under regular home loans. Also, under these loans, the EMIs are kept lower during initial years. Balance transfer home loan: This facility allows you to transfer your existing home loan from one lender to another for the purpose of taking advantage of better interest rates.

Apart from the interest rates, there are many other types of charges associated with home loans. Take a look at some of the most common home loan fees and charges: Processing fee: A one-time charge, non-refundable fee charged by the banks for processing your loan application. Although most lenders charge this fee, there are some banks that offer zero processing fee schemes as well. Generally, this fee ranges from 0.5%-1.0% of the loan amount. Prepayment charges: This is the charge that you may have to pay for early repayment of your loan. As per RBI norms, there is no prepayment penalty on floating rate home loans. However, in case of fixed rate loans, lenders can charge a prepayment penalty of up to 2%. Loan conversion charges: This fee is charged when you switch your home loan from floating to fixed rate or vice-versa. Loan conversion fee varies from bank to bank. However, most banks charge a conversion fee of 2% of the outstanding amount. Legal and technical charges: Also known as Administrative charges, these charges are levied by the banks for getting your property and other documents verified. These charges may range from Rs 5,000 to Rs 10,000. MODT Charges: Memorandum of Deposit of Title Deed (MODT) charge is levied for an undertaking that you are submitting your property documents with the bank at your free will. It generally ranges from 0.1% to 0.5% of the loan amount. Banks usually incur this charge initially, but later on they recover the same from the borrower.