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Don't have enough money for downpayment?
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January 11, 2007

What procedures do you need to follow when you take a housing loan from your company and your bank? 

Buying two homes and want a tax benefit on both?

 

What can you if you don't have enough money for a downpayment? 

Home loan expert Harshad Mehta answered these and other housing loan related questions in a chat with Get Ahead readers on Wednesday, January 3.

For those of you who missed the chat, here is the transcript.

Part I: Fixed or floating home loan?
Part II: Has your fixed home loan rate been increased?
Part III: Can I get a tax benefit on HRA and home loan?


karansingh4u@sify.com asked, sir, recently I have purchased a house for Rs. 20 lakhs (to be paid in 5 instalments). I have Rs. 10 lakhs at hand and wish to take a Hpme Loan of Rs. 15 lakhs, considering all the aspects. At this point of time I am looking for some international job assignment as I have no source of income now. In this case can any bank lend me Home-Loan, preferably Public Sector Bank. (I ahve been back to India after serving one year contract job internationally). Please guide.

Harsh Roongta answers, It will be tough for you to get a loan without showing any earning source.


Ash asked, Hi Harsh, I am having a house in Mumbai for which I am claiming available Income tax benifit on Interest repayment. I have taken one addiotnal housing loan for my another house in my native place (Meerut, UP). The new house is also for my residential purposes only and it is registered under my name only. It is self occupied house only. I go and stay there in my summer vacation. Qs 1 : Can I claim interest repayment benefit for this house too alongwith first house? Qs 2: If I can't claim Interest repayment benifit for both houses, Can I change to only new house for which Interest repayment is higher?

Harsh Roongta answers, Contrary to popular opinion, there is no overall restriction of Rs 1,50,000 on the interest payable on a loan taken to acquire/ construct a house property or in respect of more than one property. In fact, this deduction is available for any number of properties and is without any limit under specific circumstances. The calculation of income from house property (which means the rent you earn) has to be done separately for each property owned by a person and the home loan repayments are eligible for deduction for each such property. The deduction for interest payable on a loan taken to buy/construct house property (ies) (if you have more than 1) is not subject to any overall limit. As explained earlier, the limit of Rs. 1,50,000 is applicable only while calculating the income from one self-occupied property.


Tapan Kumar Mandal asked, Good afternoon Sir, I am from Kolkata. I want to take bank loan of Rs. 700000 for 20yrs.But from my office I can get 500000 @8.5% whereas all banks are charging more than 10%.Pl. suggest how should I proceed to get the Tax deduction and to save the extra interest

Harsh Roongta answers, Depending on which company you work for, you can possibly get the best of both the worlds. You can take a loan from your employer for Rs 5 lacs and take the balance loan of Rs 2 lacs from a bank. Please check with your HR department if any bank has such an arrangement with them.


rahul asked, hi sir: we hv decided to buy a house worth 75.00 lacs. our joint annual income is about 22.00 lacs. how much loan should be take & for what tenure?

Harsh Roongta answers, Use the advanced loan eligibility calculator at http://www.apnaloan.com/index.php?option=com_calculators&task=advancedhomeloan


Moti asked, We are buying one flat in Ahemedabad -- Gujarat, which is combine of two internal flat.so two property papers are available for loan.Can my brother and me take home loan on this flat separately?is there any disadvantage?

Harsh Roongta answers, None at all. Go ahead and take two separate loans.


Raghu asked, Is there any bank which gives loan equal to 100% of total cost of the house construction?

Harsh Roongta answers, Some banks will give you a 100% loan if you provide security with a liquid value of about 20-25% of the property price. Another way -- though not recommended as it is expensive -- is to take a personal loan for the enitre or a portion of the downpayment amount.


Amit asked, Hi, I already have a homeloan with ICICI which has just started 6 months back. Now i want to do part payment. What option should i choose 1) Reduce Tenure 2) Reduce EMI I have a floating rate of 9%. What are the pros and cons of each... Please recommend

Harsh Roongta answers, Either of the two is ok. If your cash flow budget is comfortable, you may go in for a reduction of tenure.


priya asked, Hello Sir, Is it Beneficial to pay pre EMI or start paying EMI after possession of the House?. Also what are the Tax Benefits that can be availed for the amount paid out of the personal money?

Harsh Roongta answers, The only deduction you can get for payment out of personal money is for stamp duty and registeration charges under Section 80C.


Part I: Fixed or floating home loan?
Part II: Has your fixed home loan rate been increased?
Part III:
Can I get a tax benefit on HRA and home loan?
Part V: Struggling with two EMI payments?

Harsh Roongta is the CEO of apnaloan.com, a site that help people get the most competitive loans. He is also the co-author of a popular guide to home loans, Complete Home Loan Guide.



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