Has your fixed home loan rate been increased?

Can you get a second home loan?

Should you opt for step-up home loan finance?

Can you get tax benefits on both home loan and HRA?

Home loan expert Harsh Roongta answered these and other such questions in a chat with Get Ahead readers on Wednesday, January 3.

For those of you who missed the chat, here is the transcript.

Part I: Fixed or floating home loan?

jayakumar asked, Gday sir. I am presently repaying a housing loan of ICICI and a car loan of ICICI as well and the remaining balance for repayment is Rs.4.5 lakhs and Rs.2 lakhs respectively. I have since been transferred to Chennai so the housing loan (taken for my Thane house) is being repaid but I need to go for a house in Chennai this year. I have some funds in bank fds of about 3/4 lakhs and hence seek your advise on how best to approach my requirement for going for a new house in Chennai with a housing loan. I will need to pay off either of the loan so that I can get a higher loan sanctioned from the bank. My monthly take home is about Rs.30000.

Harsh Roongta answers, Based on a monthly salary of Rs 30,000, you should be able to get a home loan of about Rs 11-16 lakhs minus any outstanding loans. You can see the advanced loan eligibility calculator on apnaloan by clicking on http://www.apnaloan.com/index.php?option=com_calculators&task=advancedhomeloan.

kk asked, can i get a loan for a open plot under the same rates as for the housing loans.I want to buy a farm house plot and latter develop it.Also i will require a loan for the development of the plot a little latter.

Harsh Roongta answers, Rates for plot loans are higher than that for regular loans. Also, it will be difficult to get a loan for agricultural land. You should be able to get a construction loan later, after you have converted the land into non-agricultural use.

kaps asked, hello Sir,A very happy new year to u.My salary is about 4.3l.how much loan amount can i get the max.Also can you brief me about the step up EMI procedure where i can have a low EMI now and goes on inccreasing latter.What percentage does it normally increase and in wht period.Thanks for ur answer in advance

Harsh Roongta answers, Based on a Rs 4.3 lakhs salary, you should get a 20 year loan for about Rs 14-19 lakhs @ 9.5% pa.You can use the advanced loan eligibility calculator on apnaloan for this purpose by clicking http://www.apnaloan.com/index.php?option=com_calculators&task=advancedhomeloan. If you decide to go in for a step-up plan, the eligibility will be at the higher end of the eligibility scale.Typically, the first year or two, you pay only interest; regular EMI payments begin after this period.

SWAMINATHAN asked, I HAVE LOCATED A FLAT FOR 52 LAKHS HOW MUCH WILL WE GET FUNDED FROM THE BANKS IS IT BASED ONLY ON IT OR ALSO THE TRACK RECORD OF OTHER LOANS. ON WHAT BASICS THE LIMT AND ELIGIBILITY IS ACCERTAINED

Harsh Roongta answers, Your loan eligibility is based on the lower of : 1) about 85-90% of the property value 2) Your repayment capacity based on your existing earning less any loans that you might already have. Good repayment track record on existing loans boosts the amount of loan eligibility.

raj asked, Hi, I took a home loan last month, possession is in March 07. I took a provisional loan certificate from bank (shows interest & principal). I took the cheque (partial disbursement) from bank last month and they took a cheque (pre-emi interest) from me. My EMi strated from this month. Can i add this pre-emi interest to the EMI interest & claim the tax benefit ?

Harsh Roongta answers, As long as possession actually happens by March 31, 2007, any pre-EMI interest paid by you in this year is also deductible.

arsh asked, Hello sir, I am a retired govt. servant and get a small pension. I own a house on 30 x 40 site (ground floor) in Bangalore. I work part-time in a small firm at present. I intend to construct another floor and sell this house after two years. I need to raise a loan against my existing property and not on my personal earnings now. I can pay up the interest on this loan from the rental which I will get after construction and letting out this portion. How and from which source can I raise such a loan.. Kindly advise. Thanks and best regards.. Arshad

Harsh Roongta answers, Most banks will not lend without assessing your repayment capacity based on your current earnings. Even the reverse mortgage product recently introduced in India will not help you as it does not provide a lumpsum loan. A good idea might be to get your children or spouse to be co-borrowers and base the loan amount on their earnings.

Ravindra asked, Hello Harsh, I had taken all smiles housing loan from ABN Amro bank for 5 years fixed interest rate. Last month they sent a letter by increasing the interest rate.Eventhough my offer letter says, interest rate is fixed. Can i take any action against this bank ?

Harsh Roongta answers, Please re- check your agreement to find out if the bank has the power to revise the rates. If you think not, you can lodge an official complaint on the Website of the concerned bank. If no answer or no satisfcatory answer is received in about 15-20 days, you should lodge a complaint with the banking ombudsman. The address of your local ombudsman can be obtained from www.rbi.org.in.

Debasish asked, Hi harsh, can I claim HRA and get tax benefit on Home loan full EMI parallelly as my flat is still under construction and am staying in rent?I am paying full EMI to bank.

Harsh Roongta answers, Contrary to popular opinion, there is no restriction under the IT Act as far as getting both is concerned. Many salaried consumers take a home loan to acquire a residential property, but do not stay in that property for various reasons. They stay in rented premises for which they pay rent. If they are receiving a house rent allowance from their employer, a question that frequently arises is whether they can claim exemption of their HRA based on the rent actually paid by them as well as the interest payable on the loan taken to acquire the owned property. This is such a widespread question that it rightly justifies an elaborate reply of this kind justifying that both deductions are available.

Part I: Fixed or floating home loan?
Part III: Can I get a tax benefit on HRA and home loan?
Part IV: Don't have enough money for downpayment?
Part V: Struggling with two EMI payments?

Harsh Roongta is the CEO of apnaloan.com, a site that help people get the most competitive loans. He is also the co-author of a popular guide to home loans, Complete Home Loan Guide.