Can I Apply for a Second Home Loan?resource-Banner_WC

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Can I Apply for a Second Home Loan?_WC

3 min 27 Jun 2022
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Highlights
  • Getting a Second Home Loan
  • Quick Tips for Seeking a Second Home Loan
  • Tax Benefits on a Second Home Loan

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

  • Mandatory documents such as PAN card or Form 60
  • Proof of identity (Voter’s ID 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

*Terms and conditions apply

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DISCLAIMER:

While care is taken to update the information, products, and services included in or available on our website and related platforms/websites, there may be inadvertent errors or delays in updating the information. The material contained in this website and on associated web pages, is for reference and general information purposes, and the details mentioned in the respective product/service document shall prevail in case of any inconsistency. Users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/service document and applicable terms and conditions. Neither Bajaj Housing Finance Limited nor any of its agents/associates/affiliates shall be liable for any act or omission of the Users relying on the information contained on this website and on associated web pages. In case any inconsistencies are observed, please click on contact information.

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