FAQ

A home is an investment. When you rent, you write your monthly cheque and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from your income taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years. Finally, you'll enjoy having something that's all yours - a home where your own personal style will tell the world who you are.

It is a mixture of the Value of the property and the income of the buyer. Usually you can get loans upto 75 to 85% of the Property value provided you have substantial income records. The Financiers or Bankers usually calculate the eligibility based on the net income of a person. 50% of an individual's net income is considered as the key to calculate the EMI which in turn is the loan eligibility. They do have options of clubbing incomes from co-borrowers (usually only a direct blood relative is considered as co-borrower). Use our simple EMI calculators to see how much you could pay for a particular loan. The prevailing interest rates and further procedures can be taken from our Home Loan consultants at any time.

It's very simple. Our projects are pre approved by several banks and NBFC's. You can have a choice of financier which suits your needs and essentials. Our Home Loan consultants can be contacted at any time for choosing the same.

Most loans have 4 parts:

• - Principal : the repayment of the amount you actually borrowed;
• - Interest : payment to the lender for the money you've borrowed;
• - Homeowner's insurance : a monthly amount to insure the property against loss from fire, smoke, theft, and other hazards required by most lenders; and
• - Property taxes : the annual city taxes assessed on your property, which starts once you gain entry into the house.
• Most loans are for 20 years, although 15 year loans are available, too. During the life of the loan, you'll pay far more in interest than you will in principal - sometimes two or three times more! Because of the way loans are structured, in the first years you'll be paying mostly interest in your monthly payments. In the final years, you'll be paying mostly principal.

• 1. Identity proof

  Any one of the following,

  • - Passport/ driving license/ PAN card/ Photo-credit card (with embossed signature and last two months statement)/ banker's sign verification.

• 2. Age proof and Signature proof

  Any one of the following,

  • - PAN Card/ Passport/ Driving license
  • - School leaving certificate/ Voter's card/ Birth Certificate/ LIC policy. (only for age proof)
  • - Banker's sign verification. (only for signature proof)

• 3. Address proof

  Any one of the following,

  • - Passport/ Telephone bill (BSNL/MTNL)/ Electricity bill/ Title deed of property/ Rental agreement/ Driving license/ Election ID card/ Photo-credit card (with last two month statements)

• 4. Income proof

  Any one of the following,

  • - Form 16 for the latest 2 years. (with company seal or digital signature)
  • - Original hard copy of latest 3 months pay slips with company seal or logo. (Soft copy can be submitted initially for processing of the application)

• 5. Banking history

  Any one of the following,

  • - Original hard copy of latest 1 year bank statement from salary account till date. (Pass Book copy can also be submitted)

• 6. 2 passport size photographs signed on top.

• 7. Loan Statements of Existing Loans till date if any.

• 8. Processing fee cheque from Salary account.

• - Same as above
• - Same as above
• - Same as above
• - Latest 2 years Income Tax Returns with computation of income, Balance Sheet / P&L; Account along with all schedules.
• - Partnership Deed / Memorandum of Understanding/ Article of Incorporation as applicable.
• - Individual financials along with the firm's financials, in case of a partnership firm
• - Form 3 CD if the turnover is above Rs. 30 lakhs.
• - Certificate of Registration.
• - Latest six months bank statement - personal as well as of company/Firm.
• - Processing fee cheque from current account.
• - 2 passport size photographs signed on top.

• - Almost all lenders charge certain administrative or processing fees apart from interest for providing a home loan in India. You must compare all these charges as well before signing on to a home loan contract.
• - Legal fees - payable to the lender or to the legal consultants of the lender
• - Technical or Valuation charges - payable to the lender or to his technical consultant.
• - Stamp duty on creation of mortgage - some banks charge this fee whilst other banks normally just have a clause that requires this to be paid in the event the state government actually charges this amount. The escape route for non-payment of this duty are progressively being eliminated and the fact that the consumer carries the liability to pay this duty in the future if demanded by the state government along with interest and penalties in the future. So, this should not really be used by a consumer to eliminate a lender just because he is paying this stamp duty to the government.
• - Prepayment Charges - This is the biggest charge that most consumers miss taking into account. A loan can be prepaid either in part or in full at any given point of time. You can also prepay a loan even when it is only partly disbursed. However, most banks have an upper limit on the number of times a person can prepay his loan in a year as well as on the minimum amount you can prepay each time. Until recently, banks charged a penalty for part or full prepayment. Increased competition has forced most banks to allow repayment without any charges if it is funded from own sources. In case the borrower, is transferring the loan to another lender he will need to pay the full charges.

- You will be eligible to claim both the interest and principal components of your repayment during the year. Interest can be claimed as a deduction under Section 24. You can claim up to Rs. 150,000 or the actual interest repaid whichever is lower. (You can claim this interest only when you are in possession of the house)

- Principal can be claimed up to the maximum of Rs. 100,000 under Section 80C. This is subject to the maximum level of Rs 100,000 across all 80C investments.You will need to show the statement provided by the lender showing the repayment for the year as well as the interest & principal components of the same.

- If you took a home loan and are still living in a rented place, you will be entitled to: Tax benefit on principal repayment under Section 80C

- Tax benefit on interest payment under Section 24

HRA benefit

- Of course, you can claim tax benefits on the home loan only if your home is ready to live in during that financial year. Once the construction on your home is complete, the HRA benefit ss. If you took a home loan, got possession of the house, have rented it out and stay in a rented accommodation, you will be entitled to all the three benefits mentioned above. However, in this case, the rent you receive would be considered as your taxable income.

- Yes, you can sell the property with the consent of the lender. This consent letter usually mentions the amount at which the home loan can be considered fully paid off. This amount is inclusive of prepayment charges as applicable and calculated at a future date to give you enough time to find a buyer. Based on this letter, you can negotiate with potential buyers.

- If the buyer, wants to take a loan to purchase the property the process is much simpler if he approaches the same lender. Then the lender does not need to release the title papers to another lender before getting the payment.

- If the buyer wants to make an outright payment- he can make the payment out to the bank directly based on the consent letter. And the balance amount is paid out to you. The property papers will be released only after the bank has recovered the entire amount including prepayment charges.