If you are planning to buy a home from the resale market, you have to be completely aware of the nitty-gritty that is involved in the home loan process. The procedure of home loans for an already constructed property is a lot different than the procedure of home loans for under-construction properties. If you are planning to avail of a home loan for resale flats, here’s what you need to know; read further.
A home loan is something that helps you buy your own house without the need for you to strain your budget and your savings. Choosing a home loan provider that offers great services, deals, interest rates as well as a tenure that fits your requirement is essential. That is why studying the market and is why studying the market and getting all the information about all the home loan providers available is also important. Researching and comparing will definitely play a crucial role for you in your whole process of buying a house and opting for a home loan.
Meaning of resale property
A resale property is ready to move in property that you would be buying from an individual seller. The process to get a home loan for all resale properties is different comparatively. The first thing that you will be required to do is to check whether or not you are eligible for a home loan. You can get in touch with your home loan provider, or you can just check on the internet your home loan eligibility. Below are a few pointers you must know about a home loan for resale property:
- While assessing the home loan eligibility, banks usually take into consideration the age of the borrower and the age of the property
- Typically, banks offer up to 80% of home loans for resale properties.
- Before granting the home loan, most banks will send a technical team to evaluate the property.
If you are planning to buy a home loan for a resale property, here are a few benefits you will experience as a home buyer:
- Resale homes are pretty much affordable in comparison to new properties
- You can use the existing property or home as a base for building a unique property the way you like through renovation, modernization or expansion.
- The benefit of a resale property is that the property is typically located in an already formed neighbourhood
- Moving into a resale property can help you avail of tax benefits on a home loan. As per the Income Tax Act, a tax exemption of up to Rs.1 lakh on the principal component can be availed under Section 80C. Under Section 24B, you may also be eligible for a tax deduction of up to Rs.1.5 lakh on home loan interest in the case of resale houses.
One must also note that resale properties are considered immovable property; therefore, they do not attract GST. However, a seller has to bear the registration and stamp duty charges that differ from state to state. When it comes to buying a resale property, you will be on your own to find the best offer as well as evaluate banks. So, you will be required to know everything about a home loan, how it works, and the tax on resale flats, etc. These are some of the topmost benefits that you will surely get if you are planning to get a home loan on a resale flat.