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 a better rate of interest as well.
- 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.
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