How to get a Bank Loan to Buy the Old House
How to get a bank loan to buy the old house. In the prevailing economic environment, bank loan interest rates for buying houses and plots have been reduced significantly.
In the prevailing economic environment, bank loan interest rates for buying houses and plots have been reduced significantly. People from all sections of society consider buying a house or a plot of land as an important part of life. Those planning to buy a house within the city at a slightly lower price are keen to buy old houses.
Bank Term
Banks and housing companies provide loans for the purchase of an old house subject to their legal provisions. Generally the life of ‘flats’ is calculated to be around 70 to 75 years. If the ‘flats’ are in good condition and are completed within 15 to 20 years of completion, there is a possibility of availing of bank loans. The tenor is determined in such a way that the loan so availed is repaid for a maximum period of 20 years or before the retirement of the borrower. Moreover, financial advisors note that around 15 per cent of home buyers who take loans from the bank are old ‘flat’ or old home buyers.
Resale
When old houses are re-sold in urban areas, it is customary for a few people to buy an old house on an investment basis in the interest of the future. Financial advisors say it is worth noting that there will be no additional expenses for amenities like electricity, drinking water connection, etc. while buying an old house.
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Loan Terms
The norms followed in providing loans to the old home vary depending on the bank involved. If the age of the building is less than 15 years at the time of lending to the nationalised banks to buy an old house or an old apartment, then the total value of the house is about 75 years. There is a possibility of getting a percentage of the loan. If the age of the structure is more than 20 years, there is a possibility of getting a loan of up to 40 per cent.
Rating
The house will be evaluated on behalf of the bank before issuing the old home loan. How many years has it been since an assessor inspected and built the house? Is the house strong? Isn’t it..? How much is the capacity to bear?. That will evaluate the house in many aspects. Based on his valuation report, the banks will decide on providing loans to the old house.
Interest Rate
Like a regular home loan, banks and financial institutions lend to old home loans at fixed (fixed interest rate) and variable (floating interest rate) interest rates. . It is a common practice to pay instalments within a specified time frame in the fixed interest rate instalment system and without a time limit in the ‘floating’ interest rate instalment.
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Tax Benefits
There is a tax benefit on the investment and interest paid back when a house or apartment is used for personal use. There is no tax benefit on the principal of the return in case the house is rented out. But, there is a tax benefit on the interest. Moreover, it is also necessary to show rent as income.
Apartments
U in the old apartment. D. S. Apart from this, the specified stamp paper and property registration fee have to be paid as per the total value of the house. Housing companies, including banks, also lend money for bond expenses. That fee will also be exempt from income tax under Section 80-C.
‘Margin’ amount
The general rule is that for buildings constructed within 20 years, the margin amount will be 25 per cent and if it is more than 40 per cent the ‘margin’ amount will have to be paid. Moreover, the ‘margin’ amount varies according to the loan amount and the bank. Banks and housing companies do not provide loans for homes that are more than 30 years old.bank loan to buy the old house
