Team-BHP > Shifting gears


Reply
  Search this Thread
224,160 views
Old 22nd November 2022, 18:08   #706
BHPian
 
Join Date: Apr 2019
Location: Bangalore
Posts: 368
Thanked: 3,064 Times
Re: Help with a home loan!

Quote:
Originally Posted by sumeethaldankar View Post
There is no hope for getting the OC as the builder has refused to do so and the society is running like that for many years ie without OC. They have trouble getting constant water supply and have to be sustained on basis of tankers.
Strictly avoid.
Staying in a building without an OC is fraught with legal issues.
ValarMorghulis is offline   (1) Thanks
Old 29th November 2022, 12:21   #707
Senior - BHPian
 
balenoed_'s Avatar
 
Join Date: Jul 2016
Location: KL14 <> KA01
Posts: 1,783
Thanked: 5,338 Times
Re: Help with a home loan!

Any insights on going for an insurance for home loan? There is a loan to cover insurance premium as well.
balenoed_ is offline  
Old 30th November 2022, 13:30   #708
Senior - BHPian
 
sumeethaldankar's Avatar
 
Join Date: May 2007
Location: Mumbai
Posts: 3,928
Thanked: 3,302 Times
Re: Help with a home loan!

Quote:
Originally Posted by balenoed_ View Post
Any insights on going for an insurance for home loan? There is a loan to cover insurance premium as well.
You can get coverage on the home loan. The EMI is added to the existing home loan EMI. The coverage areas are wide for eg injury/loss of life etc. The entire sum of the loan may not be covered. It could 90% etc of the loan. The loan for the insurance is around 1-3 lacs in total payable by EMI and could be foreclosed. It all depends on the company policies. If the home loan amount is large it will be a good idea to get insurance.
sumeethaldankar is offline  
Old 30th November 2022, 13:59   #709
BHPian
 
Join Date: Mar 2018
Location: Thane - MH04
Posts: 589
Thanked: 2,264 Times
Re: Help with a home loan!

Quote:
Originally Posted by balenoed_ View Post
Any insights on going for an insurance for home loan? There is a loan to cover insurance premium as well.
These are not required if you are already holding some other cover for all major emergency. Premium can be clubbed with EMI and policy may provide two types of benefits: Full loan amount as benefit or pending loan amount as benefit (hence reduced total premium). Premium can be paid in one go as well, if desired. In that case, policy becomes regular policy if you manage to close the loan account earlier than full tenure. You can pay this full premium via Credit Card and then covert that into an EMI on your card too.

Most banks have tie-ups with their sister insurance companies (HDFC group, ICIC group or SBI group) and hence they may not favor other providers.

This is just an optional ad-on and can be ignored if premiums are high.

Last edited by sunilch : 30th November 2022 at 14:13.
sunilch is offline  
Old 18th April 2023, 14:34   #710
Senior - BHPian
 
balenoed_'s Avatar
 
Join Date: Jul 2016
Location: KL14 <> KA01
Posts: 1,783
Thanked: 5,338 Times
Re: Help with a home loan!

A question to any one who have a home loan running, but the house is still under construction or not started yet.

Can we get the tax exemption under Section 24, for the interest paid during this pre-construction period. Hearing mixed information that, the Home Loan interest/principal is exempted only after the house possession is done.

Any insights on this? And is there a way to get tax exemption for this Home Loan, because the possession is at least another year away and until then am I not eligible for any tax exemption for this loan. That is disappointing.
balenoed_ is offline  
Old 18th April 2023, 16:41   #711
Distinguished - BHPian
 
ashis89's Avatar
 
Join Date: Aug 2011
Location: Bengaluru
Posts: 3,447
Thanked: 10,836 Times
Re: Help with a home loan!

Quote:
Originally Posted by balenoed_ View Post
A question to any one who have a home loan running, but the house is still under construction or not started yet.
Yes, the home loan interest exemption can be claimed after handover of the house. However for the interest paid in the years prior to handover, exemption can be claimed be claimed in the later years (post handover).
ashis89 is offline   (1) Thanks
Old 18th April 2023, 16:47   #712
Senior - BHPian
 
balenoed_'s Avatar
 
Join Date: Jul 2016
Location: KL14 <> KA01
Posts: 1,783
Thanked: 5,338 Times
Re: Help with a home loan!

Quote:
Originally Posted by ashis89 View Post
However for the interest paid in the years prior to handover, exemption can be claimed in the later years (post handover).
Yeah, but then, post hand over, you will anyway be exempted for the interest of that running year with a limit of 2 Lakhs/Year. The interest of that running year itself will use up that 2L limit. So then where is the room for this pre-handover interest in there? Or 2L limit under Section 24 is excluding/not applicable for the pre-handover interests? I don't think so.

Last edited by balenoed_ : 18th April 2023 at 16:48.
balenoed_ is offline  
Old 18th April 2023, 16:52   #713
Distinguished - BHPian
 
ashis89's Avatar
 
Join Date: Aug 2011
Location: Bengaluru
Posts: 3,447
Thanked: 10,836 Times
Re: Help with a home loan!

Quote:
Originally Posted by balenoed_ View Post
Yeah, but then, post hand over, you will anyway be exempted for the interest of that running year with a limit of 2 Lakhs/Year. The interest of that running year itself will use up that 2L limit. So then where is the room for this pre-handover interest in there? Or 2L limit under Section 24 is excluding/not applicable for the pre-handover interests? I don't think so.
If you are breaching the 2L limit with the interest for the running year then previous years' interest benefit would be lost. I hope you have a co-borrower too and have factored in using a limit of 4L between you and the co-borrower.
ashis89 is offline   (1) Thanks
Old 18th April 2023, 17:25   #714
BHPian
 
Join Date: Feb 2022
Location: Chennai
Posts: 555
Thanked: 2,730 Times
Re: Help with a home loan!

Quote:
Originally Posted by balenoed_ View Post
Yeah, but then, post hand over, you will anyway be exempted for the interest of that running year with a limit of 2 Lakhs/Year. The interest of that running year itself will use up that 2L limit. So then where is the room for this pre-handover interest in there? Or 2L limit under Section 24 is excluding/not applicable for the pre-handover interests? I don't think so.
The pre construction interest is divided in 5 equal parts and can be claimed in next 5 years after handover. Yes, I think you will lose it under the 2L capping for first year but check for subsequent years interest forecast in amortization schedule and plan accordingly.
thanixravindran is offline   (1) Thanks
Old 25th September 2023, 17:18   #715
BHPian
 
Join Date: May 2019
Location: KL-40 | KA-03
Posts: 232
Thanked: 764 Times
Re: Help with a home loan!

Did anybody recently get a home loan from SBI under the MaxGain scheme? (ie loan is disbursed along with an OD account and you can park excess funds in that account which would be considered when calculating the interest due) If so, what was the ROI?

Right now SBI's lowest ROI is 8.4% for regular term home loan, however it appears the special campaign rates are not applicable for the MaxGain scheme. I always knew that MaxGain comes with a small premium in the ROI ie 0.4% or so, but in this case the lowest ROI from SBI for MaxGain would come to 9.5% whereas the regular loan would come with 8.4%, that means 1.1% premium.

At this much of a premium, maybe MaxGain is not a good choice. Not sure why SBI is not promoting MaxGain. The other bank which provides a similar scheme is BoB Home Loan Advantage, I will reach out to them and see.
varkey is offline   (1) Thanks
Old 21st February 2024, 09:59   #716
BHPian
 
Join Date: Feb 2020
Location: New Delhi
Posts: 308
Thanked: 922 Times
Re: Help with a home loan!

Hello

I am planning to start construction of my parents house as soon as possible. I will be taking a loan for the same. The plot of land is registered in my father's name. Is it possible for me to take a loan for construction and pay the EMIs?

Thanks.
kushagra452 is offline  
Old 21st February 2024, 10:18   #717
BHPian
 
Join Date: Jan 2023
Location: Kochi
Posts: 91
Thanked: 274 Times
Re: Help with a home loan!

Quote:
Originally Posted by kushagra452 View Post
Hello

I am planning to start construction of my parents house as soon as possible. I will be taking a loan for the same. The plot of land is registered in my father's name. Is it possible for me to take a loan for construction and pay the EMIs?

Thanks.
No, you should at least be a joint owner if you want to take a home loan.
rx100 is online now   (1) Thanks
Old 21st February 2024, 10:38   #718
BHPian
 
Join Date: Aug 2010
Location: Bangalore
Posts: 506
Thanked: 1,423 Times
Re: Help with a home loan!

Quote:
Originally Posted by varkey View Post
At this much of a premium, maybe MaxGain is not a good choice. Not sure why SBI is not promoting MaxGain. The other bank which provides a similar scheme is BoB Home Loan Advantage, I will reach out to them and see.
Did you check with BoB Home Loan Advantage ? What was their offer?
fordday is offline  
Old 21st February 2024, 11:43   #719
BHPian
 
Join Date: May 2019
Location: KL-40 | KA-03
Posts: 232
Thanked: 764 Times
Re: Help with a home loan!

Quote:
Originally Posted by fordday View Post
Did you check with BoB Home Loan Advantage ? What was their offer?
Yes, I went with BoB Advantage, the RoI is same as a regular home loan for upto 75L. I got the rate of 8.45% (the lowest rate is 8.4%, however there is a 0.05% premium if you don't opt for credit linked insurance policy, I didn't find it beneficial so didn't opt for it).

https://www.bankofbaroda.in/personal...loan-advantage

One thing I liked about BoB is that, there was no push for any mandatory insurance or anything of that sort. I only had to pay about 10000+tax as processing and out of pocket expenses (mostly towards legal review and valuation of property).

Bank of India also has a similar product, with no premium in RoI compared to regular home loan - https://bankofindia.co.in/documents/...=1704199047298
varkey is offline   (1) Thanks
Old 21st February 2024, 13:47   #720
BHPian
 
Join Date: Jan 2015
Location: Mumbai
Posts: 295
Thanked: 380 Times
Re: Help with a home loan!

Quote:
Originally Posted by kushagra452 View Post
Hello

I am planning to start construction of my parents house as soon as possible. I will be taking a loan for the same. The plot of land is registered in my father's name. Is it possible for me to take a loan for construction and pay the EMIs?

Thanks.
As long as your father can be a co-borrower and the land can be mortgaged to the lender, I think it should be possible. But two important caveats you will need to check:

1. From an ownership standpoint, I think the ownership of the property (land + building constructed) will remain with your father. You may want to check this on the legal thread.

2. I am doubtful whether you can claim tax deduction on home loan interest and principal payment, since you may not be a co-owner of the property.

Ideal thing to do would be for you to included as co-owner of the property, if possible.
reverse_gear is offline   (4) Thanks
Reply

Most Viewed
Thread Tools Search this Thread
Search this Thread:

Advanced Search

Copyright ©2000 - 2024, Team-BHP.com
Proudly powered by E2E Networks