To help readers keep pace with what’s happening in the real estate sector, Mint’s Q&A will appear every other Monday.
My wife has taken a housing loan. I am a guarantor to the loan (not a co-borrower). I, however, service the loan as the EMI is paid from my salary. Can I claim income tax benefits in this case? My wife is not claiming any tax benefits, as she is unemployed at present.
As per the Income-tax Act, tax benefits on home loan is given only to the owner/co-owner of the property and not to any other person even though the person may be paying the EMI.
My fiancée and I want to buy a bungalow. Will we get a home loan for this purpose? Also, can we jointly apply for the loan, and is it possible to split the EMI between the two of us as we both are working?
A home loan can be availed for buying the property. However, for availing a joint loan, the couple needs to be married. Thus, you can apply for a home loan together only after you register your marriage.
I have been asked for a collateral security by my bank for availing a home loan. What is a collateral security?
Any additional asset pledged/mortgaged for taking a loan is called a collateral security. Besides the mortgage of the property against which the loan is given, several financial institutions seek additional security, such as shares, another property or life insurance policy, for approving a loan in exceptional circumstances.
Renu Sud Karnad is joint managing director, HDFC. Readers may write in with their queries and comments to firstname.lastname@example.org