Get all the Basic info you need to know before buying a Home.
- Sale Deed
- Title Deed
- Approved Building plans
- Completion Certificate (Newly Constructed)
- Commencement Certificate (Under-construction property)
- Conversion Certificate (If agricultural land is covered to non-agricultural)
- Khata Certificate (especially in Bangalore)
- Encumbrance Certificate
- Latest Tax Receipts
- Occupancy Certificate
The general eligibility conditions are as follows:
The borrower should be a resident of India or an NRI.
Above 24 years of age at the beginning of the loan.
Below 60 years (65 for self-employed) or retirement age when the loan matures.
Apart from the documents mentioned under the home loan section for Indian citizens, NRIs are required to submit a few additional documents as well. These include:
A copy of the passport.
A copy of the works contract or the labor card.
The power of attorney (POA). (POA is required because the borrower is not based in India.
Under the Pre-EMI option, the borrower is required to pay only the interest on the loan amount that will be disbursed as per the progress on construction of the project. The actual EMI payment starts after the possession of the house.
EMI or Equated Monthly Installment is a fixed amount paid by you to the bank on a specific date every month. The EMIs are fixed when you borrow money from the bank as a loan. EMI’s are used to pay both interest and principal amount of a loan in a way that over a specific number of years, the loan amount is repaid to the bank with interest.
In a fixed interest rate, the interest remains constant throughout the loan period irrespective of the changes in market conditions while in the floating interest rate, the interest can decrease or increase depending on market fluctuations.
Generally, banking finance institutions pay around 75 to 85 percent of the cost of the property bought. The remaining 20 % of the amount is paid up front, which is popularly known as the down payment.
Power of Attorney allows a person to authorize another person the right to make decisions regarding the person’s assets, finances and real estate properties.
There are two types of power of attorney. First, the ‘General Power of Attorney’ where a property owner confers ‘general’ rights. The rights include but are not limited to sell, lease, sub-lease etc. The second one is the ‘Special Power of Attorney’ where only a specific right is given by the owner to the chosen person.
Stamp Duty is the tax paid for the legal recognition of property. It is paid by the home buyers. You can claim tax incentives of up to Rs 1.5 lakh on stamp duty and registration charges on a new property purchase or construction of a house. However, these benefits are available for only one self-occupied property.
Yes. Generally, the stamp duty on the gift deed ranges from 5% to 12% in all states. In few states like Haryana, Rajasthan and Delhi, concession of 1 to 2 per cent is given to female transferors.
Property is considered a capital asset and Capital Gains Tax is levied on the gains arising from the sale of property. Such gains are calculated after adjusting the inflation rate, transfer and renovation charges.
If the house is held for less than three years prior to its sale, it is termed as a short-term capital asset and any gain arising from the sale is treated as a short-term Capital Gain. There are no tax exemptions for short-term Capital Gains and one needs to pay it according to the applicable tax slab.
However, if the property is sold after holding it for more than three years, it is treated as a long-term capital asset and the gain arising from it is called the long-term Capital Gain. Such gains attract a flat exemption rate of 20%.
No tax benefits are available for NRI’s unless you file your returns and subsequently become eligible to avail the tax benefits as mentioned under Home Loan FAQ’s.