If you opt for a home loan for a second property that you are likely to lease, you stand to gain from tax benefits both on the rental income and the interest paid towards the loan. Depending on your previous home loan’s status, here’s what to expect.
You’re still repaying your first home loan
- If you’re still making payments towards your first home loan , you’ll find that the application process for the second home loan won’t differ vastly.
- In fact, it makes more financial sense to approach your existing lender. You will get a loan on a pre-approved basis. Also, if you’ve been making payments regularly, you can attempt to negotiate for a better Home Loan interest.
- As long as your debt to income ratio doesn’t cross 50, you’ll be able to get a second home loan with ease.
You have already repaid your first loan
- In this case, you can shop around to find a home loan that offers the best rate of interest and benefits.
- Check your eligibility criteria and use a Home Loan EMI Calculator to ensure that your choice of loan is the most affordable for you.
- Fill in the form, submit the necessary documents, and await approval of the loan.
- In case you share a good relationship with your previous lender, see if you can use this to your advantage to wager a better rate of interest.
DISCLAIMER:
While care is taken to update the information, products, and services included in or available on our website and related platforms/websites, there may be inadvertent inaccuracies or typographical errors or delays in updating the information. The material contained in this site, and on associated web pages, is for reference and general information purpose and the details mentioned in the respective product/service document shall prevail in case of any inconsistency. Subscribers and users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/service document and applicable terms and conditions. In case any inconsistencies observed, please click on reach us.
*Terms and conditions apply
