Can I get home loan for resale flat?

My aunt is purchasing a resale flat in Delhi. I knew beforehand that banks lend money for property purchase. However, I was clueless about the documents required for home loan for resale flat. Now that I have conducted research on the topic, I am prepared and helping my aunt.

According to my research some lenders may be hesitant to provide loans for older properties, but there are banks that will give home loan for property purchase. eg.HDFC Bank offers home loans for properties up to 35 years old, as long as they are in good condition and meet other eligibility criteria.

To get home loan for resale property you will need to  collect required documents, including proof of identity and address, proof of income, copies of the property's title deed, and estimates of the property's value.

How much home loan can i get for resale flat?

The mount of home loan sanctioned from the bank will depend on various factors including your income, loan tenure, value of property,existing EMI etc. You can use home loan eligibility calculator to get an idea of what you can afford.

How much loan can I get for resale flat?

As explained above, the loan given by bank will depend on your repayment credibility, income, loan amount, etc. You can take a look at the table given below to know the interest rate. 

If you need help with documents required for home loan for resale flat, contact the bank manager.

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“Can I get home loan for resale flat“ this question must have come to your mind if you are planning to buy a house with home loan. The answer to this question is yes, you sure can. A resale flat is the most feasible option if you’re looking for a house for immediate possession.

• You can take immediate possession of the flat once your housing loan is processed unless there’s re-furnishing or renovation work to be done.

• The overall cost incurred from taking a housing loan for a resale flat is low in comparison with a flat under construction.

• A resale flat is a more affordable option due to several factors such as the age of the property, depreciation, etc.

• Passport-sized photo

• Application form

• Latest six months’ bank account statement

• Identity Proof (Voters ID, PAN Card, Driving Licence, or Passport)

• Address proof (Latest phone bill, property tax receipt, electricity bill, Voter ID, or Passport)

• Business address proof if you are self-employed

• Documents related to the property (Non-encumbrance certificate, land/building tax paid receipt, sale deed, agreement of sale, etc.)

• Copies of local body approval and approved plan

One advantage of buying a resale flat on a home loan is that you can get tax benefits on a home loan once you gain possession of the flat. You can avail up to Rs. 1,00,000  deduction on the principal amount, under the Income Tax Act (section 80C) as well as a tax exemption of up to Rs. 1,50,000 on the interest on the home loan, under Section 24B.

I have recently checked my home loan eligibility using this simple calculater:

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I hope I cleared all your doubts regarding home loan for resale flat.