Can I Apply for a Second Home Loan?resource-Banner_WC
Can I Apply for a Second Home Loan?_WC
Would it be Possible for Me to Apply for a Second Mortgage?
Getting a Second Home Loan
While it is possible to get a second Home Loan, it depends on your credit score and ongoing financial obligations. Applying for a second Home Loan is not very different from applying for the first Home Loan. However, borrowers are usually advised to repay their first Home Loan before taking on a second. A clear repayment capacity is a good indicator of your eligibility for a second Home Loan.
There are exceptions but taking a second Home Loan while still paying the EMIs for your first Home Loan may limit your Home Loan eligibility. Use a Home Loan Eligibility Calculator, or a Home Loan EMI Calculator to assess your repayment capacity before making your second Home Loan application.
Read on to learn more about the requirements for a second Home Loan, the tax benefits, and the Home Loan eligibility.
Ideal Lender for a Second Home Loan
You can apply for a second Home Loan with your current lender or with a new lender altogether. Whoever you choose to proceed with, ensure that you’re aware of their terms and conditions, and the parameters you need to meet, to be approved of a second Home Loan of your choice.
Additional Link: A Quick Guide to Securing a Better Interest on Home Loans
Quick Tips for Seeking a Second Home Loan
- Take stock of your current EMI and financial obligations to chalk out your repayment schedule
- Be prepared to put down a higher down payment on your property, as your risk assessment may be higher through the lender’s profiling
- Consider the other costs of borrowing a Home Loan, such as the processing and sanction letter fees
Documents Required for a Second Home Loan
- Proof of identity (PAN Card or Aadhar Card)
- Proof of income (3 month’s salary slips for salaried and professional individuals and proof of income from the existing business for self-employed individuals)
- P&L statement (for self-employed applicants only)
- Property documents
Note: This list is indicative. Additional documents may be needed during loan processing.
Tax Benefits on a Second Home Loan
Individuals seeking to buy a second Home Loan can receive tax deductions up to Rs.1.5 Lakh and Rs.2 Lakh on the principal amount and interest payments. These tax benefits can be claimed under Section 80C and Section 24(b), respectively.
Additional Link: Top Five Ways to Manage Your Home Loan Burden
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