Your Questions About Home Loans

John asks…

Should I apply for a home loan or a business loan first? Will one affect the other?

I’m planning to apply for a home loan to get my very first home soon, and I have plans to apply for a small business loan to buy a small business. Should I get my home first and then apply for the business loan or vice versa? Also, my income at the moment is not enough to support both, but once I get the business, I will be making more money.

I should add that the business I’m interested in has consistently made money, so that would make it easier to get a loan for it, right? The Home loan I’m looking for would be in the 100,000 dollar range and the business loan would be about $35,000 (yes, it would be a small business and a very small, affordable home). Also, my income right now is about $20,000 (I’m a student) and it will go up to $45,000+ once my business is established. I should mention that I need the home soon so that can’t wait too long.

How should I go about it all? Thanks!

John answers:

Get the business loan first. After you get the business loan you can show your higher income to get a home loan.

If you get a home loan first then the bank will think you are preoccupied with paying off the home loan and you might not get the business loan. Also if you apply for the home loan first you might not get it at all since your income is very low.

Thomas asks…

How much home loan will i get from sbi, hdfc,icici bank on my net salary?

hi,i am from maharashtra..india.i have to take home loan from any suitable bank .my net salary 23500.how much loan will i get on different period.i select 20 years or 25 years period for repayment .how many days it will take to sanction? Which will be more beneficial and affordable.if you know or experience .please give me info.thanks.

John answers:

You have to personally approach them. Each bank is having its own calculations.

For your information, one of the person known to me planed to build a house on his own most valuable plot. He is having money to build the house with his own money. But still to avail tax benefits he approached for a home loan to various banks. His income as per Income Tax is only 4 lakhs per year. He approached varies banks for a home loan. LIC said 12 lakhs, ICICI said 16 lakhs and HDFC was happy to give 22 lakhs just in 30 minutes. HDFC have given the loan on the basis of property value rather than income per year.

Carol asks…

How long must i wait after taking out a home loan to take out an access bond on that home loan?

I have just applied for a home loan and would like to take out an access bond on that home loan. I would just like to know how long i have to wait until i can do so?
ok i need to rephrase the question, my apologies. how long after a bond has been approved and completed can i apply for an access bond?

John answers:

You’re making this up right? You don’t even know if you are approved for a home loan
make up question,,, why? Advertising something?

Linda asks…

Query on tax implications for second home loan?

I want to know the income tax implications for second home loan in India.

Currently I own a flat in Bangalore for which I have completely repaid the home loan.
Now, I am planning to buy a second property for which I intend to take a new home loan.

In this scenario, will I be able to claim deduction on the entire interest paid on my home loan (for the second property) or am I eligible for only 1.5Lakh deduction?
Since I have already repaid my first loan, will this new loan be considered as a “second” home loan? Or does it require both loans to be active at the same time?

Also, is it mandatory to show rental income from the first property even if it is not rented out?

Thanks,
Atri.

John answers:

There is no problem in availing second home loan and claim income tax benifits. However you should take care of following things.
1- Only one house can be offered as self occupied and income of this house will be zero. Housing loan if any taken of this home will qualify for interest as well as principal deduction in income tax calculation. Limit of interest deduction in this case will be Rs 150000.00
2- You have to declare (mandatory) second home as rented (deemed) and include rent of this house in you total income. However in this case there is no limit of interest on home loan. Whatever interest is due, will qualify for deduction.

George asks…

For the home loan exemption in India, is it apart from the standard savings exemption ?

Is the home loan tax exemption included within the standard savings exemption of Rs.1lakh, or is it a separate tax exemption apart from the standard Rs.1lakh exemption

John answers:

Yes the home loan tax exemption is included within the standard savings exemption of Rs.1lakh. No separate exemption is available regarding it under section 80C.

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