Originally Posted by GTO
(Post 1679916)
Engineers may be able to better comment on this. |
Originally Posted by bblost
(Post 1679965)
Sort of like this quick image I created Attachment 264392 |
Originally Posted by NetfreakBombay
(Post 1691952)
Builder is right to some extent. Adding your father as co-applicant would make this loan complex. Reason is beyond retirement, EMI would be a very high percentage of income. This is about EMI that would be paid by him. This would trigger bank's systems. You can explain things and sort this out with branch manager. He/She can solve this in multiple ways: 1. Give option to your father to pay up outstanding at retirement using proceeds from PF / other investments (baloon payment) 2. Step down EMI at age of retirement |
Originally Posted by DCEite
(Post 1691846)
Can a co-borrower who is not salaried (retired and getting pension) reduce the tenure and loan eligibility of the main applicant even when the main applicant's salary alone meets the loan eligibility? This is what the builder is telling me, that there is no problem if i take the loan singley, since the eligibility criteria are met (salary, from 16 etc.), However he says that if i make my father the co-applicant my loan tenure would decrease to 10 yrs since my father is 60 right now and HFCs consider only 10 yrs of pension life. Isn't this ridiculous, since it would be me who is paying the EMI and my salary *alone* meets the loan criteria comfortably ! Infact i would think that adding a co-applicant who is getting atleast something (pension) should actually make my case stronger ? |
Originally Posted by DCEite
(Post 1691984)
Sorry i think there is gap in your and my understanding. The builder says that Bank will give me the loan without any issues since i meet all the eligibility criteria myself. EMI would be approx 30% of my current slary with no other outstanding loans either. BUT, if i add my father as a co-applicant (reason is that i want to make im the co-owner since in future he might help me prepay the debt after selling our old house), my loan tenure would be decreased to 10 yrs from 20 yrs if i take the loan alone. Even though my father would not be paying a single penny towards EMI/Down payment. I do not want the banks to consider *his* income at all, since mine is already sufficient. |
Originally Posted by DCEite
(Post 1691984)
Even though my father would not be paying a single penny towards EMI/Down payment. I do not want the banks to consider *his* income at all, since mine is already sufficient. |
Originally Posted by DCEite
(Post 1691846)
Can a co-borrower who is not salaried (retired and getting pension) reduce the tenure and loan eligibility of the main applicant even when the main applicant's salary alone meets the loan eligibility? This is what the builder is telling me, that there is no problem if i take the loan singley, since the eligibility criteria are met (salary, from 16 etc.), However he says that if i make my father the co-applicant my loan tenure would decrease to 10 yrs since my father is 60 right now and HFCs consider only 10 yrs of pension life. Isn't this ridiculous, since it would be me who is paying the EMI and my salary *alone* meets the loan criteria comfortably ! Infact i would think that adding a co-applicant who is getting atleast something (pension) should actualy make my case stronger ? |
Originally Posted by DCEite
(Post 1691984)
Sorry i think there is gap in your and my understanding. The builder says that Bank will give me the loan without any issues since i meet all the eligibility criteria myself. EMI would be approx 30% of my current slary with no other outstanding loans either. BUT, if i add my father as a co-applicant (reason is that i want to make im the co-owner since in future he might help me prepay the debt after selling our old house), my loan tenure would be decreased to 10 yrs from 20 yrs. Even though my father would not be paying a single penny towards EMI/Down payment. I do not want the banks to consider *his* income at all, since mine is already sufficient. |
Originally Posted by NetfreakBombay
(Post 1692224)
Not sure how to explain this. This is not about eligibility. This is about payment tenure. Tenure can not go beyond retirement. It it does, then branch manager has to approve an exception. This means some additional work because of which loan approval would take more time. Try applying to some bank from where you DO NOT intend to get loan (E.g. ICICI). That would make it clearer. |
Originally Posted by DCEite
(Post 1692351)
Ok, so what i understand is that tenure will be calculated based on whichever co-applicant's remaining working life is *lower* |
Originally Posted by DCEite
(Post 1692351)
(even if that applican't EMI and downpayment contribution is to be zero). Is that correct? |
Originally Posted by DCEite
(Post 1693522)
But if he is co-applicant he can foreclose the loan without any tax implication, however if i am the only owner, i will use *his* money to foreclose the loan and that money which he would provide me would attract tax which i will have to pay.. right? |
Originally Posted by DCEite
(Post 1693522)
But if he is co-applicant he can foreclose the loan without any tax implication, however if i am the only owner, i will use *his* money to foreclose the loan and that money which he would provide me would attract tax which i will have to pay.. right? |
Originally Posted by BaCkSeAtDrIVeR
(Post 1694161)
Bank happy. You happy. Dad happy. Taxman happy. The legislator will of course, find some means to change the law. :-D |
Originally Posted by DCEite
(Post 1693522)
But if he is co-applicant he can foreclose the loan without any tax implication, however if i am the only owner, i will use *his* money to foreclose the loan and that money which he would provide me would attract tax which i will have to pay.. right? |
Originally Posted by BaCkSeAtDrIVeR
(Post 1694161)
Here is a flow chart for you. Your dad need not be a co-applicant; only a guarantor for your loan. 1. YOu take loan, start repaying it regularly. 2. Wait till the time you want to fore-close. 3. Deliberately commit a default. Ask the bank to send you and the guarantor (dad) some notice inw riting. 4. Your dad pays the loan on your behalf. Bank happy. You happy. Dad happy. Taxman happy. The legislator will of course, find some means to change the law. :-D |
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