Benefits of Applying Online
When Banks Compete, you win.
Apply for a Home Loan at ApnaPaisa and we will match your requirements with the best offers from our network of over 400 service providers. We will get a maximum of five providers to compete for your business. WHEN BANKS COMPETE YOU WIN. You can then decide which home loan is best for you based on:
- Lowest Interest Rate
- Lowest EMI
- No Pre-payment charges
- Lowest Processing Fees
- Maximum Eligible Loan Amount
- Mandatory Documents Required
- Lowest Processing Fees
Or any other factor that is important to you.
Negotiating Tips
1) If you have a good credit record and your income is sufficient to justify the loan you can negotiate on interest rates. You can also try and get Processing fees or legal or valuation fees reduced or completely waived.
2) If you go for a floating rate loan then pre-payment charges are not payable.
3) When interest rates are high and are expected to go down you should go in for a floating rate loan as it makes no sense to lock into high fixed rates or the so called Dual rate loans where rates remain fixed for a couple of years before shifting to regular floating rate loans. Please review this decision at least once every 6 months
4) Take term insurance and critical illness and accidental disability policy for the full loan amount to make sure you or your loved ones don't have to worry about loan repayment should you die or are disabled due to a critical illness or accident. You cannot be forced to buy this policy from the insurance company chosen by the lender - you should choose your own insurer.
Tax benefits when the husband is not a co-owner to the property but a co-borrower to the home loan
Tax benefits when the husband is not a co-owner to the property but a co-borrower to the home loan, may claim deductions under Section 64Apnaloan.com Research Bureau
10 Aug 2007
Will I get deduction for home loan repayments made by me on a flat owned by my wife?
I am a resident of Delhi. I intend to purchase a residential property in Delhi for my own occupation and will be taking a home loan to pay for 80% of the property value. The balance 20% will be paid from my savings. My wife is a housewife with no income of her own. I intend to register the house in her sole name to take advantage of the concessional rate of stamp duty on properties registered in favour of women. I will gift her the money required to make the 20% down payment as well as the monthly amounts required to pay EMI to the bank. The bank is willing to provide the home loan as I will be a co-borrower. Will I be able to get the tax benefits on the loan repayments even though I will neither be a owner or co-owner of the property?
You have raised a very interesting question. Under Section 64(i) (iv), the income arising to the spouse of the assessee from assets transferred directly or indirectly to the spouse by such individual otherwise than for adequate consideration is clubbed as the income of that individual. In simple English it means that the income arising out of the house that is purchased from the cash gifted by you shall be taxed as your income.
It is clarified under explanation 2 of Section 64 that "income" includes a loss. Therefore, the loss that arises from the self occupied "house property" will be taken as your "loss" and be allowed to be set off against your other incomes such as salary or income from business or profession. However this interpretation is not free from doubt and you should take expert tax advice since this is a highly technical issue.
The deduction under section 80C for repayment of the capital portion of the loan will not be available.
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