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Can I Get a Home Loan for Buying an Old House?

By Finserv MARKETS - Jul 29,2019
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Can HRA Be Claimed Together with Interest on Home Loan

One of the biggest misconceptions in the home loan and real estate industry is that home loans can only be obtained for projects that are under construction. While many people believe that they cannot obtain a home loan to buy a property that has been previously owned by someone, this is inaccurate. A dream home is something that we all aspire to have, and if you do not want to wait to get the possession of a house that is currently under construction or simply like another house more, you do not need to worry about finding a loan to finance the same. Home loans are available for resold houses and the resale market often offers several advantages such as ready-to-move-in houses as well as flexible payment programs.

What are the criteria for getting a home loan on a resale house?

Some important factors that will affect your ability to obtain a home loan on a resale house is the age of the house as well as the physical condition of the house. We are well aware that the tenure of a loan depends on the age of the buyer. Hence, the tenure of the home loan being allotted to you will depend on a number of factors including, the physical condition of the property, age of the property as well as your age.

Additionally, before granting the home loan, the bank or the lending institution will also conduct a structural audit of the flat or building to ensure that the present age, as well as the strength of the house, is on par with their standards. They want to ensure that the house will be capable of lasting beyond the tenure of the loan. Once a structural engineer approves your property, you will be able to obtain a loan for the same. In case you want to buy a property that is going in for redevelopment, the builder will have to make sure that the interests of the home loan lender are fully protected. Unless the resale property you wish to obtain a loan for is structurally not sound, banks and lending institutions will not refuse your loan merely because you wish to purchase a pre-owned property. Forget financing worries for your new home thanks to Bajaj Finserv home loans on Finserv MARKETS. You can get the best deals on a home loan in a hassle-free, minus all tedious paperwork and you also have the flexibility of choosing your home loan repayment tenure, which can go up to 300 months.

What are the advantages of getting a home loan on an old house?

One of the main advantages is that if you opt to purchase an old house, you will be able to obtain the same at a more affordable rate than a new house. This means that depending on the age and condition of the house, as well as interior fixtures and build, you can negotiate a price, which will be financially feasible. Additionally, you will be able to get access to locations inside the city or closer to the city centre that tend to not have a lot of new developments due to high demand and low supply. Since most resale houses are ready to move in, you do not have to continue to pay rent and EMI at the same time. You can also save the additional interest on EMI you could pay for a house under construction. Often in second-hand houses, basic amenities and fixtures are already in place by the previous owner, helping you save money. Finally, you can also start availing the tax benefit on an EMI from the first-month instalment of your home loan. As per the Income Tax Act, a tax exemption of up to Rs.1 lakh on principal EMI can be availed under 80C. Additionally, a tax deduction of up to Rs.5 lakh can be availed on home loan interest under 24B, in case of resale houses.

So take advantage of the attractive Bajaj Finserv home loan interest rates on Finserv MARKETS and enjoy 100% transparency in all the terms and get the freedom to choose your own repayment tenure. Make your dream home a reality today!

Also, read about when is the right time to prepay home loan.

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522