|
Written by Site Administrator
|
|
Tuesday, 27 October 2009 17:32 |
“Co-applicant” as the name suggests is a person who is jointly applying for the home loan along with you. Banks accept immediate family members as co-applicants. Your father/child, your spouse can be a co-applicant. In case of child, the child must be the only child. This is to avoid future legal complications.
Generally, co-applications are also salaried and they add to your repayment capacity. As a result your eligible loan amount will increase. Additionally, insurance cover etc when taken along with the property will also become applicable to both applicants.
|
|
|
Written by Site Administrator
|
|
Tuesday, 27 October 2009 18:08 |
Banks would charge interest in a flat fixed rate or floating rate.
Fixed rate is one flat interest rate fixed for your loan during the entire payment tenure of 15 or 20 years. This rate is usually 2 or 3% higher than the floating rate for the year in which your loan is activated.
Floating rate fluctuates from time to time based on the revision of interest rates by RBI. When your loan is sanctioned, the floating rate is generally 2 to 3% lower than the fixed rate for that year. For the first year, most banks will not revise this rate for you. From the second year onwards, depending on the prevailing floating rate during the term, the interest rate on your home loan may increase or decrease. In the event of change in floating rates, the bank will not revise your EMI amount. Instead, your repayment tenure, the no. of months may increase or decrease. In the case of floating rate customers, the bank will issue a letter with effective revisions in your repayment tenure everytime a revision in floating rates has been effected.
|
|
Written by Site Administrator
|
|
Tuesday, 27 October 2009 18:21 |
Tax Benefits on your home loan are governed by the rules laid out under Section 80C and Section 24 of the Income Tax of the Government of India.
As per these rules, the interest paid, and not the principal, on your home loan is exempt from Income Tax during the entire tenure of your loan repayment.
However, please note that the HRA exemption for people with Home Loan is allowed only for the first three years starting from the financial year in which you begin to claim exception under these sections. The logic is that you now have a home of your own and are supposed to get only ‘one’ exemption related to homes. You are either living in your own house, in which case, there will be no question of an HRA exemption. In other case, you rent your new home to some one else, and are enjoying additional income. So you cannot claim a house rent allowance even in this case.
|
|
Written by Site Administrator
|
|
Tuesday, 27 October 2009 18:22 |
Generally, an applicant and a co-applicant are splitting the home loan between themselves so that repayment becomes easy for them. Likewise, even the tax benefit must also be split between them so that each can avail a portion of the benefit.
In the event that the primary applicant claims full tax exemption for the home loan, the co-applicant is not allowed to claim for the same home loan anymore.
|
|
Written by Site Administrator
|
|
Tuesday, 27 October 2009 18:38 |
|
The following documents must be submitted along with your application: - Proof of Identity
- Proof of residence
- Proof of Employment
- Proof of Age
- Proof of Domicile
- Three to Six months Paychecks from employer
- Six months Bank Statement of your primary savings account, your salary account
- Tax receipts of the past three financial years
- Property Documents
- Photographs
- Original copy of the Agreement of Sale between you and the Seller
- Municipal Tax receipts of the property
- Building Plan
- Municipal Approval document
- Last 30 years history of the land property (called linked documents)
- Current Encumberance Certificate (Issued on the Plot and the Survey No. by the Office of the Registrar of Properties)
- Plan and Layout of the land/flat/house you are buying
Depending on the type of property, your nature of employment the documentation to be submitted may vary. You may have to consult your bank to find out more details on documentation.
|
|
|
<< Start < Prev 1 2 3 Next > End >>
|
|
Page 3 of 3 |
Home Loan
