How many properties can I own?

You can own as many properties as you want.

What is property registration?

It refers to the registering of documents relating to transfer, sale, lease or any other form of disposal of an immovable property. Registration is compulsory by law for all properties under Section 17 of Indian Registrations Act, 1908. Once a property is registered lawfully, it means that the person in whose favor the property is registered, is the lawful owner of the premises and is fully responsible for it in all respects.

What documents are required for registration of a new apartment/plot?

Sale Deed, No Objection Certificate (NOC) from builder, NOC from banks, Building Plan approvals, Completion Certificate, PAN Card and Photographs.

What documents should I check before buying a new property?

• Sale Deed

• Title Deed

• Approved Building plans

• Completion Certificate ( Newly Constructed)

• Commencement Certificate( Under-construction property)

• Conversion Certificate( If agricultural land is covered to non-agricultural)

• Khata Certificate (especially in Bangalore)

• Encumbrance Certificate

• Latest Tax Receipts

• Occupancy Certificate

What is home insurance?
Home insurance is a type of insurance policy that covers private residences and protects them from unpredictable damages, natural or man-made disasters, burglary and theft.

Can I repay the loan ahead of schedule?
Yes, lending institutions allow you to prepay your loan. However, these institutions may charge early repayment penalties, which may vary from 2 to 3% of the outstanding principal amount..

Do I need a guarantor to get a home loan?
It depends from one bank to another. Some banks ask for 1-2 guarantors

If I have money, is it still necessary to avail of a bank loan for buying a home?
It is generally advantageous to go for a home loan as it helps you in availing tax benefits. However, please consult your CA or tax advisor to discuss the advantages and disadvantages in your case.

Do I need to furnish any security to get a home loan?
In a majority of the cases, the property to be purchased itself becomes the security and is mortgaged to the lender till the entire loan is repaid. A number of lenders may ask for additional security such as life insurance policies, Fixed Deposit receipts and savings certificates.

What is a down payment?

Generally, banking finance institutions pay around 75 to 85 percent of the cost of the property bought. The remaining 20 % of the amount is paid up front, which is popularly known as the down payment

What is the time required for home loan disbursement?
On an average, loans are disbursed within 3-15 days after satisfactory and complete documentation and completion of required procedures.

What is the time required for home loan disbursement?
On an average, loans are disbursed within 3-15 days after satisfactory and complete documentation and completion of required procedures.

What is the difference between fixed rate and floating rate of interest used for home loan?
In fixed interest rate, the interest remains constant throughout the loan period irrespective of the changes in market conditions while in the floating interest rate, the interest can decrease or increase depending on market fluctuations.

How is the interest rate calculated?
The interest on home loans is usually calculated either on monthly reducing or yearly reducing balance. In some cases, daily reducing method is also adopted.

• • Annual reducing: In this system, the principal, for which you pay interest, reduces at the end of the year. Thus, you continue to pay interest on a certain portion of the principal that you have actually paid back to the lender. This means that the EMI for the monthly reducing system is effectively less than the annual reducing system.

  • Monthly reducing: In this system, the principal, for which you pay interest, reduces every month as you pay your EMI.

  • Daily Reducing: In this system, the principal, for which you pay interest, reduces from the day you pay your EMI. EMI in the daily reducing system is less than the monthly reducing system

What are the documents needed to apply for a home loan?
You have to submit the following documents:

• • Proof of Identity: PAN, Driving license, Voter ID, Aadhar Card

  • Proof of Income:

    • Salaried Applicants: Latest 3 Months salary slip showing all deductions and Form 16 for the last three years.

    • Self Employed Applicants: IT returns for the past 2 years and computation of income for the last 2 years as certified by a CA

  • Bank Statement: Past 6 months

  • Guarantor Form (Optional)

What are the general eligibility conditions for availing a home loan?
The general eligibility conditions are as follows:

• • • The borrower should be a resident of India or an NRI

    • Above 24 years of age at the beginning of the loan

    • Below 60 years (65 for self-employed) or retirement age when the loan matures

What is Stamp Duty? Who is liable to pay Stamp Duty? Do I get tax benefits on Stamp Duty?
Stamp Duty is the tax paid for the legal recognition of property. It is paid by the home buyers. You can claim tax incentives of up to Rs 1.5 lakh on stamp duty and registration charges on a new property purchase or construction of a house. However, these benefits are available for only one self-occupied property.

What are Capital Gains on property purchase?

Property is considered a capital asset and Capital Gains Tax is levied on the gains arising from the sale of property. Such gains are calculated after adjusting the inflation rate, transfer and renovation charges

Key points

• Buying and selling property

• Renting and leasing property

• Housing loans and financing options

• Legal and documentation services

• Vastu consultations for property improvement

• Interiors Design solution for your Dream Home

• Negotiations & consultings