Home Loan EMI calculator Interest rates, Application process, Tax Benefits, Schemes

 

Home Loan EMI calculator

Home loan Interest rates for 2019 Bank wise April 2019

 

 

 

Home loan Eligibility

It Depends on

1. your Age,
2. Your Annual Income and
3. Your margin Amount for the house,
4. Loan Amount.
5. Monthly expenses (EMI Should not more than 50%  of Your Expenses*)
6. Your Assets like  Land, Home, Any Fixed Deposits, Insurance Plans,  Mutual Funds investment added to trust.

If Your Age below 40 Years then Loan Amount will be 5-6 Times higher than your Annual income (It will be in salary certificate or if self-employed then you have 3 years IT Returns)

 

Ex: If your Annual income 200000 and your age below 40 then your loan amount will be

2*5 (10,000,000)

Age above 40 years then the loan amount will be 4-5 times of your annual income.

2*4  8 lakhs

Your Margin Amount Should be 15-20% for most of the banks.

Margin Amount / Down payment ideas for Home Loans

1. LIC
2. PPF
3. EPF Withdrawal for a home loan
4. Your Savings if you made any
5. Sell your land or Plots if bought any in the past.

 

Home Loan Application Process

Oh, God! it’s a bit frustrating if you are self-employed and don’t have enough downpayment of up to  40%.

You have obtained the documents required for a home loan

 

Property Documents

1. Link documents up to  20-30 years depending on the bank.
2. Sale Deed of Property
3. Agreement with buyer

Personal documents

1. Aadhaar card
2. Passport photo
3. They force you to take Joint Loan by attaching wife or mother.

 

Income Pr0of

1. Bank Statements up to 1 year 3 years depends on Bank
2. Salary certificate for employees
3. 3 years ITR for self-employed  they also ask turnover

 

They verify the  Land ownership by taking their lawyer Legal Opinion.

They estimate property Value based on their engineer & other market valuation techniques.

The process takes minimum few weeks or months.

The problem I faced Loan Executive asks for money indirectly delaying.

manger, Executives have their commissions, by reducing interest rates, increasing loan amount and other support for sanctioning.

My Case:

I tried SBI (Failed at legal opinion)

HDFC >> (loan agent with real estate agent I paid 30,000 for 30 lakhs loan for agent ) real estate agent (i agreed to pay 1% commission) increased 1 lakhs on 50 lakhs property. He took commission my side 50K and builder side 50K and again asking for 50K.

PNB: said you don’t have proper documents and manager asking transfer loan to other banks.

ICICI>> They added high-interest rate they interest depends on persons to person ex: govt employee get a low-interest rate.

whatever I paid to the loan executive not returned back. I lost my mind there. No loan approval from any bank. it took 2-3 months.

 

Adding Co-borrower benefits (joint Home loan): increase the loan amount, tax deduction applies to each individual.

Registration charges:

• Registration charge 0.5%
• Stamp duty 4%    (dedcutable under section 80C upto 1.5 lakh)
• Transfer duty 1.5%

Ex:

50 lakhs property

Registration charge 0.5%   (25,000)

Stamp duty 4% (2,00,000)

Transfer duty 1.5%  (75,000)

4 Lakhs registration cahrge for 50 lakhs property. (varies from area /state to state)

 

Home loan Tax Benefits

Section 80 C: Principal Amount Deduction Up to 1.50,000

Section 24 : bank loan Interest Up to 2,00,000

Section 80 EE: up to 50,000 on interest (property value 50 lakhs and loan value below 35 lakhs)

PMAY CLSS: Up to 2.3 Lakh to 2.6 Lakhs interest subsidy based on annual income (need to apply)

 

government housing schemes

Rajiv Awas Yojna
now it’s in  part of PMAY
Maharashtra Housing And Area Development Authority (MHADA), 2018
Tamil Nadu Housing Board Scheme (TNHB)
Delhi Development Authority Housing Scheme, 2018

Pradhan Mantri Awas Yojana

interest subsidy of 6.5% on housing loans up to 15 years loan amount 6-12 lakhs only maximum 2.3 to 2.6 lakhs for 20 years loan.

 

Buying Home VS rent

It depends on

Rent value and Down payment of Home or direct buy. and tax slabs

The number of years you stay in that house.

other factors Inflation rate, Capital Appreciation, 

Scenario: investing in a mutual fund 20 lakhs with SIP Withdrawal

20 @ 10-15 Intrest rate, we ake 10% 2 lakhs annual return (we easily pay 10-20, rent other hands, these 20 lakhs went to home loan down payment and again we have to pay EMI Equal to 20,000 Per month.)

1. property appreciation @ 10% growth
2. Inflation @ 8%
3. Home Loan @ 10%

Mutual fund

appreciation @ 10%

Inflation @ 8%

Home loan Interest NA

When Rent is Low Landlord loss and tenant gain.

Detailed discussion available at Rent vs buy page. there are various rent vs buy calculators available over the internet.

TIP:  for 2nd house rent purpose annual rent value should equal to other investment values like ELSS. FD

Ex: 50 lakhs invested in Rental Property and for rent then the rent value should be 5-10%.