I'd like to post one query regarding home loan. If the land is in my grandparents’ name, can I take a home loan to construct the building and also will I get the tax benefits?

Ans: For any lender, home loans are sanctioned in the name of the homeowner so the responsibility of repayment lies with the borrower. So, you can have both of your names in the sale deed and apply for the home loan as co-applicants. That way your father’s bank account can be registered for repayment of home loan.

While this is the ideal solution, you can also choose to have the property registered in your father’s name along with the home loan. Once the home loan is paid off, he can create a gift deed for you to transfer the ownership.

Ans: Since this is an internal transfer of property between two related parties, you will not be able to get a home loan for the same.

Ans: In case you are trying to get a home loan to purchase the house, since it is an internal transfer between two related parties, you will not be able to get a loan for that. However, if you want to put the house as a mortgage to get a secured loan, either your father-in-law has to transfer the sale deed in your name or he has to be a co-applicant to the loan.

Ans: I feel both answers are not pertaining to income tax act. You can check with Bank

Ans: Taking a joint home loan with your friend can be a viable option to fulfill your dream of owning the desired home. Banks typically consider the combined income and creditworthiness of all co-applicants when approving a joint home loan.

In your case, since your friend has 40 lakh rupees for the down payment, you can apply for a home loan of 70 lakh rupees jointly. However, it's crucial to note that each bank has its own lending criteria and may evaluate the loan application based on factors such as income stability, credit history, and debt-to-income ratio.

Before proceeding, it's advisable to discuss the terms of the joint ownership with your friend and seek legal advice to draft a co-ownership agreement outlining the responsibilities, rights, and obligations of each party to avoid any potential conflicts in the future.

Additionally, consult with multiple banks or financial institutions to compare loan offers and choose the one that best suits your requirements in terms of interest rates, tenure, and repayment options.

By leveraging the combined financial strength of both applicants, you can increase the chances of loan approval and make your dream of homeownership a reality.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in