What is Mortgage Finance

The borrower (mortgagor) gives the lender (mortgagee) a lien on the property as collateral for the tenure of the facility. The lien on the property expires when the mortgage is paid off in full.

Eligibility Criteria

1. Must have a minimum of one co-applicant who has a legal connection to the property, by inheritance/marriage (40% of the pooled income considered for EMI), or with an independent guarantor acceptable to HDFC.

2. Maximum age of an applicant for the income to be considered for repayment capacity is 65.

3. All co-owners to the property offered as security must be co-applicant or a legal consent is required.

4. Owner/co-owner must be a major if not apply through a court assigned legal guardian.

5. Property offered for Mortgage:

• Primary mortgage, on the property developed / purchased / renovated.

• 100% of the value of building must be insured by a reputed agency acceptable to HDFC.

• Mortgage property value should have minimum 125% of the approved loan amount.

Fees and Charges

- Application Fee of MVR 500/- (non refundable)
- Nonrefundable loan processing and inspection fee (1% of the loan amount) maximum MVR 50,000.
- Deposits of the 3 months monthly installment (DEMI), one month’s installment has to be paid before first disbursement and balance two months before the final disbursement.
- Single Insurance premium for tenure of the loan
- Revenue stamp MVR 25/-
- Financial commitment charge (grace period extension fee) 1% on the undrawn balance
- For outer island, a council fee for mortgage registration, cancellation and inspection applies

 

Screening process
  1. Receiving complete application
  2. Documentation verification
  3. Interview and credit evaluation
  4. Inspection of the property and BOQ verification
  5. Credit committee decision making
  6. Offer letter / Acceptance
  7. Agreement signing
  8. Mortgage registration (City / Atoll Council)
  9. Issuing progressive disbursements
Monitoring and site inspection

Regular site visits will be carried out to get an overview of project status during the construction period.

The frequency of site inspection depends on the draw down schedule (phases) agreed by the owner / contractor.

Disbursements and Request for payments

On completion of each phase the client has to request for inspection to get the next disbursement.

Recovery measures

Whenever the borrower is in default, HDFC sends notices to the Borrowers and the Guarantor advising them to repay the overdue amount.

HDFC will be vigilant, from the disbursement till the recovery of the entire loan amount. On all occasions those which exceeds 90 days will be filed at the Court.

Glossary

EMI - Equated Monthly Installment.

Pre-EMI - Amount to be paid during the grace period.

OE - Owners Equity / Owners Contribution

DEMI - Deposit of Equated Monthly Installment.

BOQ - Bill of Quantity