I have a housing loan from a bank, the loan is taken by my son and I am guarantor in this loan. Can I take reverse mortgage loan?
– Karthik Punia If the self-occupied property still has a loan outstanding on it with Dena bank, you will not be able to get a reverse mortgage loan against it. It seems the house is owned by your son and not by you. Only a senior citizen who is owner of the house can take a reverse mortgage loan. If, however, you have your own home on which there is no loan and where you are also staying you can look for a reverse mortgage loan if you are a senior citizen. My wife has a plot of about 1000 sq ft in Bengaluru. We intend to construct a house. Can I take a housing loan and claim income tax benefit? I work in a MNC. One of the banks told me since I am a guarantor, I will not be able to claim the income tax benefit.
– Divakar Soni Since your wife is the owner of the land, she will have to join you as a co-borrower for the construction loan. If you want to avail tax benefits, You will also have to be the co-owner of the property. So unless you become joint owner of the property, you will not be able to claim tax deduction benefit. In order to become a co-owner your wife can transfer some part of the land to you and thereby make you co-owner of the property. Both of you can get the tax benefits on home loan repayment as well as on interest payment for the construction loan in the ratio of
your share in the loan. We have an old home of 750 sq ft land. The property is in my father’s name. We are planning to demolish and rebuild. I will need housing loan for this. I will be the loan requester and re-payer, since my father is retiring this August. Guide us on getting a home loan for this condition. What is the best option and what documents are required?
– Abhilash Since your father is the owner of the house, he will need to be a co-applicant for the loan along with you though the loan can be granted based on your income. The lender will treat this as a self-construction case, which means some lenders are unlikely to grant such loan. You can talk to the standard lenders such as ICICI, HDFC Ltd. or any other lender who provides loans for self-construction. You will need to provide an architect or civil engineer’s certificate for the estimated cost and also the approved plans. Since you are not the owner of the land (and hence automatically of the new building that will be constructed on that) you will not be eligible for any tax deductions on the loan repayments and interest in spite of paying everything yourself.
The lender will also like to get some documentation done to ensure for itself that the property will pass on to you if your father expires during the loan tenure.
It might be a better bet for you to get some form of ownership right in the house both to protect your own interests as well as to be eligible for tax benefits on the loan taken to construct the new house.This can be done by way of acquiring some share in the land by way of a gift deed executed by your father in your favour or alternatively you can purchase some share in the land from your father.