I have a joint home loan from a housing finance company, with me, my father and brother as applicants. I am the primary account holder. I want to change this to a single account holder, which will be me. The bank has refused to change this as the property is mortgaged with it and it cannot do this unless the loan is closed. What are my options? Can I transfer the loan to another bank where I remove the joint holders from the loan account during transit to the new bank, requesting them the change (my father and brother are happy to sign any legal documents, if required)
—Mithilesh Tiwari If your father and/or brother are also co-owners in the property then every lender will insist on them being coborrowers/co-applicant with you. In case they are joint owners removing their names as co-owners will have stamp duty / registration charges implications. However, if neither of them are co-owners and your income is sufficient to justify the loan, you can transfer the home loan from one lender to another and get the names of your father and brother removed in the process.
You will need a good track record of payment of EMI’s of present home loans as well as other loans/credit card dues to be able to get an offer from another lender to take over your existing loan.
I want to take loan of R12 lakh. My age is 36 years. Should I go for a 15-years or 20-year loan? My current take-home monthly salary is R30000.
—TK Awasty Remember, the shorter the tenure, the higher the EMI per lakh. (For example at 10% the EMI per lakh for 20 years is R965 and for 15 years it is R1075. As the EMI increases, your loan eligibility decreases. For a net income of R30,000 per month in the same example, the loan eligibility will be around R14 lakh for 20 years and R12.50 lakh for 15 years (assuming that the lender will consider 45% of your net monthly income as available for paying of all EMI’s and you are not servicing any loans currently)
Even if loan eligibility is not a constraint, you should consider taking longer tenure under floating rate. This way you get better loan eligibility without undue stress on your monthly cash outflow. At the same time, you can pre-pay the loan when liquidity permits you to do so without any prepayment penalty. I am having a personal loan with one of the banks. Can that be clubbed with a home loan as I can pay only one EMI at a time?.
—Ranjit T Sarin The home loan and person- al loan cannot be clubbed since both are different products. You can ask your home loan lender to give you a top-up loan on the security of the house and you can prepay your personal loan with it. You will be eligible for a top- up loan only if your income is sufficient to service the EMIs on both the home loan and the top-up loan and the property value is sufficiently large to provide an appropriate margin for both loans put together.