Know how CIBIL score calculation is done?

Today almost no loan or credit card application gets approved without checking the applicant’s CIBIL report and CIBIL TransUnion Score. Ever wondered how a person’s credit score is calculated? 

Here’s a quick glimpse into what goes into the making of a person’s CIBIL TransUnion Score:


What is a CIBIL TransUnion score?


CIBIL calculates an individual’s credit score through advanced analytics and assigns a number between 300 and 900 to a borrower, based on his/her credit history. The closer your score to 900, the more confidence the credit institution will have in your ability to repay the loan and hence, the better the chances of your application getting approved. While each bank will have its own credit scoring cut-off based on the credit sanctioning policies, it has been observed that most banks are lending to consumers with a CIBIL TransUnion Score of 750 and above.

How is the score calculated?


While each credit information company has its own proprietary algorithm to calculate an individual’s credit score, the most important elements of the score composition are centric around the loan payment behavior of the individual. Your CIBIL TransUnion Score is calculated based on the information in the “Accounts” and “Enquiry” section of your CIBIL Report. The score is calculated based on the following factors:

  • Credit Utilization: How much credit is the consumer using?
  • Defaulting/Delinquency: How many accounts are past due and by how many days?
  • Trade Attributes: How old are this consumer’s lines of credit? What type of credit does he have? Does the consumer have a good mix or balance of credit or is it all credit cards?

Here is a breakup of the various factors that impact the CIBIL Transunion Score:


CIBIL score calculation

1. Past Performance: Individuals past performance on their debt obligations is the most important criterion and contributes approximately 30 per cent weightage to the score.

2. Credit Type & Duration: Type of loan availed whether secured or unsecured loan, and the duration of credit history established contributes an additional 25 per cent to the score.

3. Credit Exposure: The total amount of credit exposure contributes another 25 per cent

4. Other factors: Other factors such as credit utilization, recent credit behavior contribute the remaining 20 per cent to the score.

Your CIBIL Report and CIBIL TransUnion Score not only determine whether or not you qualify for a loan, but it may also have an impact on the terms and conditions on which you can avail the loan. The higher the credit score, the better your chances of availing the loan faster and on favorable terms. It is advisable to check your CIBIL Report and CIBIL TransUnion Score before applying for a loan. Timely payments of loan EMIs is most important for maintaining a good credit history and a healthy credit score.

When does Home Loan EMI start?

Your Home Loan EMI starts from the time the Bank has created a disbursement cheque. Some banks start your EMI from the date you picked the first disbursment cheque even before you have

First EMI is called broken period EMI. Which is lesser than your EMI.

What is Broken period EMI?

When you opt for EMI payment, say 5th of every month. Now suppose your disbursment cheque is handed over on 25th of the month. Then Bank would calculate interest for 25th till 5th of next month.. say for 10 days and it would take it on 5th. The next EMI will be as per your EMI schedule.

Again you can go for Pre-EMI or Full EMI. I would suggest if you are capable of paying full EMI then start with Full EMI. Most of the times Banks will keep it to Pre-EMI for under construction properties. Which will not decrease your loan tenure.

Plan your loan well, then only you will close it faster and home will be fully yours.

If you already have existing home loans then to plan well and close faster, then manage the loan on Loanyantra for free Home Loan Management Company India: LOANYANTRA

If you are looking for Home Loans and want to plan it well to close fast then apply on LoanYantra | Get Home Loan Online .

Banks Liable for Loss of Original Property Documents

It is common that you hand over your original property documents to the lender either a bank or NBFC, when you take a loan. The lenders are usually careful in handling the customers’ documents but, there are cases where the banks can misplace the documents due to some unconscious situations. You or the lender knows it only when you go to collect the original documents during a loan closure.

What are the documents the lenders have with them.

The most important original documents about the property are with the lender.

  1. Sale deed
  2. Mother deed
  3. Katha (Extract and Certificate)
  4. E C till date
  5. Approved building plan/Layout approved plan

Why do the lenders need to put the original property documents with them?

Trusting the home the bank lends in order to fulfill your dream. To avoid the chances of unavoidable situations like customer not repaying the loan under any situation, the bank keeps the originals with them. So, literally, your home becomes yours, only after you repay the total loan amount.

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Get paid with interest if there is a loss of original property documents by the bank

How can the loss of original documents happen?

After the  documents are received by the customer, the bank files it and stores it in a locker making it utmost confidential. But at times the loss of original property documents can happen due to different reasons.

When you avail a home loan, all the original documents of the property pass through multiple hands before being dispatched to the central repository. For most of the banks central repository is in Mumbai. If you request for xerox of the documents during the tenure of the loan, then the documents will be pulled out from the repository and after taking a xerox, these are again kept in the locker of central repository. These central repositories are normally maintained by a third party. After the loan is closed, the original documents go through the same cycle before being handed over to the owner. There is always a possibility that the loss of original property documents can happen during this process.

Also if the premises is shifted to a new building, then the original property documents can be misplaced while transferring.

What you should do when there is loss of original property documents by the lender?

If there is a loss of original property documents by the lender, it is their sole liability to obtain authentic duplicates or a certified copy of the same. An FIR needs to be filed by the lender, and the entire process and all costs are to be borne by the lender.

To understand clearly, let’s go through a case study on loss of original property documents.

Case Name : Secretary/Manager, Mayyanad Regional Co-Operative Bank V/S Ebrahimkutty

Appeal Number :  First Appeal No. 288 of 2014.

Date of Judgement/Order : 20/02/2017

Courts :  National Consumer Disputes Redressal Commission (NCDRC)

Facts of the Case:

  1. Ebrahimkutty had taken a loan from Regional Co-operative Bank against mortgage of his property in a village of Kerala by depositing the original title deed. On repayment of the loan in 1999, the bank failed to return the deed.
  2. The bank later verbally informed him that the original deed could not be found and attempts were being made to trace it. The bank advanced further loans to him against the same title deed. These loans too were repaid in due course.
  3. The last loan was finally closed on September 8, 2012, but the bank still could not find the title deed.
  4. The bank then informed him that the original deed was misplaced while shifted its building premises.
  5. Aggrieved, he filed a complaint before the Kerala State Commission. He claimed that his property was worth Rs 75 lakhs, but he could not sell it as the bank had lost the original document. He sought a compensation of Rs 25 lakhs.
  6. The state commission directed the bank to return the original deed and also pay compensation of Rs 10 lakhs within one month, or along with 12% interest, if delayed. In case of failure, to return the title deed the bank was ordered to issue a written certificate about the loss.
  7. The bank appealed against this order. It contended that the loss of the deed was communicated way back in 1999, but the complaint was filed 12 years later, so it ought to have been dismissed.
  8. It also argued that complainant had not been able to show that he had suffered any damage due to the loss of the title deed. Complainant argued that the bank had merely admitted that the deed had been misplaced, but had never admitted that it had been lost.

Issue: Whether Bank  would be liable to pay for loss of documents taken against loan?

Held:

Document lost cannot be recovered: The National Commission observed that if a document is misplaced, there is a possibility that it could be recovered at a later stage. If it is lost, the question of recovery does not arise.

False assurance wont effect Period of Limitation :The Commission noted that even in the affidavit filed by the bank, it had denied that the original title deed was lost, and had asserted that an assurance had been given that it would be returned as soon as it was traced. So the Commission held the complaint to be within limitation.

Loss of Deed would effect value of property:The Commission also observed that the loss of the title deed would affect the value of the property, so complainant would be entitled to be compensated.

Deficiency of Service:The National Commission held the bank guilty of deficiency in service and ordered the payment of compensation amounting to Rs.5 lakhs along with 12% interest for the period of delay

Never neglect the loss as it might decrease the value of the property. It is always better to have a written note by the lender about the loss. Once you get the note, preserve it as that is the only document you have for your property.

 

21 Thumb Rules of Personal Financial Planning.

Personal financial planning
Personal Financial Plan
21 thumb rules of personal financial planning.

1. 30 % of your income must be used for monthly living expenses.

2. 30% of your income must be used for liabilities repayments, if any..

3. 30% of your income must be SAVED and INVESTED for your future LIVING.

4. 10% of your income must be spared for entertainments, vacations

5. 6 months expenses must be available for emergency fund (should be invested in LIQUID FUND, FD Etc)

6. Home loan must be registered and applied on both husband and wife name. (Both can get benefits on Home loan Tax benefits)

7. Buying second house for investment is not advisable ( Survey reports – it will fetch you only around 3% return)

8. After 45 years of age, not supposed to enter into any BIG LIABILITIES (Higher education of children and wedding of children will happen around 45 to 50 only, so plan now for the same.)

9. Have joint account @ Bank savings account.

10. Property must be registered on both Husband and wife name. (As per legal act – after husband first legal heir is wife, after wife it goes to children).

11. Regular check on Nominations at all financial instruments. if  not nominated, do it now..

12. Only in insurance policy, claims payable to Nominee. In other financial instruments legal heirs certificate is must to get back the settlement

13. Must have Term Insurance to financially secure future of your dependants..

14. Don’t take any financial investment decisions EMOTIONALLY, and also Avoid last minute tax saving investment decisions, plan well in advance.

15. MEDICLAIM is must (in spite of Group mediclaim coverage given at office) (After retirement there is no mediclaim coverage, after 50-55 years of age, it’s very tough and costly to enter into mediclaim)

16. For your jewelry LOCKER, Only one lakh is payable by bank, if theft or fire happen at bank. Provided insurance done.

17. Like same way Government guaranteed only one lakh for your FD also. (Fixed deposits with Banks upto Rs. 1 lakh only are backed by deposit insurance)

18. Know all Tax implications. You cannot avoid paying tax. But you can minimize by way of tax planning and investments..

19. All financial documents must be kept safely and keep family members informed of the same.

20. Financial investments must be followed through personal financial planning adviser.

21. Review your portfolio for every six months.

These are general suggestions, but personal financial planning and investment decisions depend upon case to case.

Have a Healthy and Wealthy Financial Year 2017-2018…..

How bank calculate interest, is it really 8.5% when they say it for home loans?

One should understand well to mange the home loan well else manage your loan for free on Home Loan Management Company India: LOANYANTRA

Interest rate consist of 2 components.

Interest Rate = Margin Rate + MCLR Rate for specific period or Base Rate

When you avail a loan for 8.50% that would be broken up into

8.50 % = 0.50%(Margin) + 8.00% (1-Year MCLR)

Its confusing right.

When ever you take a loan either Fixed or Floating the margin on that day gets fixed.

In case you loan is floating, then the floating will depend on the MCLR Rate for the specific period. Normally most of the banks give you for 1-year. Meaning every 1-year your rate would change as per that days MCLR for that period.

Say after year 1-year MCLR is 9.75% then your interest rate would be 10.25%.

10.25% = 0.50% + 9.25%

For more details you can check the blog : Demonetisation effect on Home Loans – Get Home Loan Online In India

Which is most preferred bank for home loan in India?

Home Loan depends on following factors

  1. Your Salary or Your Business turnover
  2. Your age
  3. Your Existing Loans
  4. Your Credit Score.
  5. Last but not the least the Property you are buying & Own contribution to pay 20% of the property
  6. Location , approvals of the property.

Your Salary : You should be earning enough to pay the 80 lac EMI.

Your Age : Based on your age, maximum Loan tenure will be decided. Before you retire i.e 58 years you should be clearing the loan.

Existing Loans : If you have any exiting Loans, you will be paying EMI so you overall eligibility would come down for the next loan.

Credit Score : Banks/NBFC would look at your credit report and based on how you have paid will decide to go if they want to give you loan

Property : When you are asking for Rs 80 lac loan, it would mean at least the property should be Rs 1 crore. Technically the price of the property should support it and you have to pay 20% from your self funding and 80% you can take loan. It should not be like for Rs 10 Lac property you are paying Rs 1 Crore.

Approvals of the property : Based on the Location and type of approvals and amount of deviation while constructing banks would take a call if they will be giving loan or not.

So based on the property you have selected and based on your financial profile you need to select the bank and the loan product. Some not so famous banks will have better products for certain properties.

Plan your loan well, so that you will close faster and home will be fully yours.

If you are looking for Home Loans and want right home loan fit for you and to plan it well to close fast then apply on LoanYantra | Get Home Loan Online .

If you already have existing home loans then to plan it well and close faster, then manage the loan on Loanyantra for free Home Loan Management Company India: LOANYANTRA

What is GST? Impact of GST on Real Estate Sector.

What is GST?

Goods and Service Tax (GST) is the tax which amalgamates various central and state taxes into one which aims to build a common market in India, and also avoids paying tax in multiple stages.

In-detail,  GST, under one roof, includes many taxes, viz., excise duty, additional excise duty, service tax, additional customs duty, surcharges and cess, value added tax, sales tax, entertainment tax, central sales tax (levied by center and collected by state), octroi, entry tax, purchase tax, luxury tax and tax on lottery, betting and gambling.

Though the expected GST was in between 20% and 23%. The final rate is decided by the finance council and its members and is fixed to 18%.

GST on Real Estate Sector.

At present the consumers in the real estate sector who opt to take an under construction property pay sales tax, value-added tax, stamp duty and registration charges to the builders. With the introduction of the GST, it is made clear that the indirect taxes, viz., sales tax and value-added tax will be replaced by GST. Whereas the developer or builder pays various elements of non-creditable tax costs like excise duty, customs duty, CST, entry tax, etc which are inbuilt in the pricing of the units. All these tax costs add upto anywhere between 22%-25% of the price of the units. Also, for the builder while procurement of goods and services, GST would be applicable. This GST would not be creditable and the developers would have to load this in the price of the property. Hence, there are chances for the increase in the pricing of the under-construction properties. 

But post demonitisation, the things turned out different with respect to real estate prices. The unorganized sector now offers at 30% lower prices whereas the organized sector remained neutral.

 

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No price change estimated after implementation of GST

Also, for the projects which are under construction in different stages, the builder might have already purchased the raw material needed for the whole project. Which means the builder might have paid all the taxes which were supposed to be during the purchase. If the GST is implemented and if the builder is to claim the input credits, the cost of the unit might reduce to 20% of the value of the property. But, under GST, he can not get the credit of what he paid as consumer pays tax on taxes paid by the builder. Hence, the builder surely fits the price in the units. For example, if a builder wants to sell an under-construction property of Rs. 1000, the price of it is Rs. 1000 + service tax + VAT + stamp duty. With the implementation of GST, the price of it will be Rs. 1000 + GST + stamp duty. GST is beneficial in real estate sector, if the builder is benefited and if he passes on the same benefit to the customer.

If the consumer is looking out for a ready to move in apartment, the consumer need not pay the service tax or VAT, but has to pay the stamp duty which varies from state to state. So not much of price change is expected even with the implementation of GST.

So, what needs to be analysed and understood is, with the 18% replaced GST rate, how will the impact of the pricing of the under construction property will be? And how will the builder charge you at the end of the day.

The budget session clearly mentioned that the goal is affordable housing. So, even with the implementation of GST, the under construction projects’, the unorganized and organized sector real estate prices remain neutral. This gives another hope for the investors, and a big move for the real estate market after demonetisation.

Guide to the Home Loan Process

Buying a home is one of the major decisions a person has to take during his life. It is rare to find someone who pays the entire cost of home at one go. A home loan is an essential part of any home buying endeavor. Taking a home loan is a long journey, which involves many stages. The key to getting your home loan in a smooth way is being familiar with the entire home loan process.

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Know the home loan process before-hand
Beginning the home loan process in India

The process of getting a home loan starts with a formal application for the loan. The application form requires certain basic information about you. This will include your personal, residential, income, employment, educational details and details about the property, estimated costs and current means of financing the property. Though the requirements may vary from bank to bank but there are certain things which every bank will ask.

The application form must be supported with valid documents to substantiate the facts. Generally the banks will ask you to submit following documents.

  • Income proof
  • Age proof
  • Identity proof
  • Address proof
  • Employment details
  • Proof of educational qualifications
  • Details about the property if finalized
  • Bank statements

Proof of income : This will need to be backed up by proof such as copies of last three years’ Income Tax returns (along with copies of Computation of Income/Annual accounts, if any), Form 16/Form 16A, last three months’ salary slips, copies of the last 6 months’ statements of all your active bank accounts in which your salary/business income details are reflected, etc. Other documents that you need to provide with your application form include age proof, address proof and identification proof. You may also be asked to give your employment details.

Age proof : Copy of your school leaving certificate/Driving license/Passport/ration card/PAN card/Election Commission’s card/etc.

Identification proof : Same as above, but with photograph. Sometimes, the same document if it contains a photograph, the current residential address and the correct age can be the proof for all 3 things.

Address proof : Similar documents need to be provided to prove that you are actually staying at your current address.

Your employment details: If your company is not well‐known, then a short summary about the nature of the company, its business lines, its main customers, its competitors, number of offices, number of employees, turnover, profit, etc may be needed. Usually, the company profile that is available on the standard website of the company is enough.

Educational qualification : The copy of certificates of your higher educational qualification needs to be submitted.

The purpose of the entire exercise is to ascertain the suitability of an applicant for a home loan. The income documents and bank statements provide vital clues to the bank regarding your financial health.

Processing fees for home loans in India. : An important thing to note about home loans is the processing fee. Banks charge a processing fee for every home loan application. This fees is non refundable. This fees is used by the bank to start and maintain the home loan process including completing the various formalities during the entire period.

Evaluation and verification of home loan applicant : After applying successfully for the home loan and submitting the processing fees, the bank evaluates your application, decides in principal about your home loan and requires a personal meeting with the bank officials. This decision for personal interaction can be taken within 2-3 days of submitting a complete application. The purpose of this personal interaction is to know more about the borrower and his repayment capacity. Being satisfied by your application and personal interaction, the bank proceeds to verify all the facts that you mentioned in your application for home loan. A field investigation process is initiated – to confirm and validate everything stated in the application form. Qualified representatives are sent by the bank to your office and place of residence to ascertain the facts. The references provided in the application are cross checked and verified.

Verification of repayment capacity : Once the field investigations over, the bank now goes ahead to verify your repayment capacity. This is the most vital part of any home loan process. If the bank finds that you’ll not be able to repay the money back with interest on time, it will simply deny you any home loan offer. On the other hand if the bank finds that all’s well and is convinced by your repayment capacity, it sanctions your home loan. Based on how well the bank is satisfied by your financial conditions and repayment capacity the bank can issue a conditional sanction or unconditional sanction. If the sanction is conditional, you’ll have to fulfill the conditions imposed before the loan is disbursed.

Sanction letter for home loan : The bank then prepares a sanction letter which contains the following detail:

  • The amount of home loan sanctioned
  • The interest rate applicable on your home loan
  • Whether the interest rate is fixed or floating
  • Your home loan tenure
  • The mode of repayment of the home loan
  • If any special scheme applies to the home loan, its details
  • The terms and conditions associated with the home loan

If you find the offer attractive and agree with all the facts mentioned in the sanction letter, you will have to provide an acceptance copy to the bank. This is generally a duplicate of the sanction letter signed by you, provided to the bank for its records. If the bank charges any administrative fee, it will have to be submitted at this stage.

Verification of the property : Now the bank will verify the property in question. The home loan is a secured loan with the property being used as the security or collateral. So, to get the home loan you must submit the original documents of the property to the bank. The title deeds, no-objection certificates and other documents required by the bank are to be submitted in original and the bank keeps them safely until you repay the entire loan amount. After taking the papers, bank conducts a legal check so as to verify that the property has a clear title and the home loan is being disbursed to the right person and for the right reasons. Banks don’t lend for disputed properties and for titles where ownership cannot be easily enforced.

Along with the legal check, banks also send experts to the location of your property to conduct a technical valuation. If the property is under construction, the banks verify the stage of construction, quality of construction, progress of construction, locality etc. and evaluate the property on established parameters. In case where the property is ready or is being resold the bank verifies the ownership, maintenance, age of property, quality of construction, locality and required legal clearances. The banks have qualified valuators, which assess the value of property on various parameters and decide on the amount of loan

The sole purpose of all this exercise is to ensure that the property has a clear title, is technically sound and meets the valuation standards of the bank.

Note: Verification is not necessary if loan is being sanctioned by a tie-up Bank.

The disbursal of home loan : Once the formalities are completed and the bank is satisfied with the legal, technical and financial valuation of the property, the registration process for the home loan begins. The legal documents are to be prepared on stamp papers of required denominations in a format approved by the bank’s lawyer. The home loan agreement is then signed and you need to submit the post dated cheques for the agreed term. After the home loan agreement the loan disbursal process begins. Depending on the home loan purpose, and the agreed type of disbursal (lump sum or in stages), banks disburse the home loan amount.

Income Tax certificate

Every bank issues an income tax certificate that serves as requisite proof to let you avail of tax benefits that accrue on repayment of a home loan. This will typically contain the total amount of interest and capital repaid during the year. This is mandatory to claim the tax benefit in respect of self-occupied property. You will have to file this with your tax returns and submit this to your employer or chartered accountant to calculate your tax liability.

How Loanyantra Works During the Home Loan Process :

It is our work to make you feel at ease during the process. We are here to make you select the best and your favourite bank. We ensure that your process is smooth as we send you alerts and remainders about each step before even the agent comes to you. You can always contact our relationship manager for any queries.

Can I avail a loan against another property if I already have a home loan from a bank?

Yes you can avail Loan Against Property for other loan provided you meet the eligibility requirement.

If you are falling short of eligibility, how do you increase it ?

  1. In case, if your spouse is working to increase the eligibility you can add the spouse as a co-applicant to increase the eligibility.
  2. In case if you have rented your other house, then you can show rental income and increase your eligibility.
  3. In case if you have a small loan where in you are paying high amount as EMI, then try to close it to increase the Eligibility.
  4. In case if your tenure of existing home loan is less than maximum tenure you are eligible, then increase the existing home loan tenure to get more loan.
  5. Last but not least, incase if you are paying higher interest rate then the market rate, first thing to do is to correct the EMI to existing rate and reduce the EMI. This would also increase your loan eligibility.

Your eligibility requirement would depend on following things

To get a loan will depends on following factors

  1. Your Salary or Your Business turnover + other incomes
  2. Your age
  3. Your Existing Loans
  4. Your Credit Score.
  5. Last but not the least the Property you are buying & Own contribution to pay 20% of the property

Your Salary : You should be earning enough to pay the EMI + at least 40% of earning for your living expenses.

Your Age : Based on your age, maximum Loan tenure will be decided. Before you retire i.e 58 years you should be clearing the loan.

Existing Loans : If you have any exiting Loans, you will be paying EMI so you overall eligibility would come down for the next loan.

Credit Score : Banks/NBFC would look at your credit report and based on how you have paid will decide to go if they want to give you loan

Property : When you are asking for Rs 80 lac loan, it would mean at least the property should be Rs 1 crore. Technically the price of the property should support it and you have to pay 20% from your self funding and 80% you can take loan. It should not be like for Rs 10 Lac property you are paying Rs 1 Crore.

All banks will not approve all the properties.

Plan your loan well, so that you will close faster and home will be fully yours.

If you are looking for Home Loans and want right home loan fit for you and to plan it well to close fast then apply on LoanYantra | Get Home Loan Online .

If you already have existing home loans then to plan it well and close faster, then manage the loan on Loanyantra for free Home Loan Management Company India: LOANYANTRA

All You Need To Know About Property Tax

If you have been looking into the market of home loan, you might have come across the term ‘property tax’ more than once. Though property tax varies from state to state and depends on the valuation of your home, you must remember that your home loan depends on the property tax. Each home loan has the provision that in case you fail to pay off the property tax in an “event of default”, the lender could even foreclose on your property even when all your mortgage payments have been done in a punctual manner.

Why should you concern yourself with property tax?

In India, property is a source of income for many and hence, it was only but natural that tax would be levied on any property you purchase, be it a humble shop or godown, flat or a proper residential building, provided you are using it to earn money in any form. The amount of property tax that you need to pay would depend on the value of the property that is being taxed in the first place.

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What is property tax?

Why is the property tax being charged at all?

The fact that the local municipal authority is the force behind the property tax being levied must tell you a lot about how the money you pay goes to towards the maintenance of the basic civic services in your city. The property tax in India is only charged on the real estate building and not on the plots of land, which don’t have any establishment in its vicinity.

How is the property tax calculated? What is Annual Value?

The property tax you need to pay is decided on the basis of the annual value of the let out or self occupied property. For the self occupied properties, the annual value is taken to be zero. However, if that property is rented, the property tax is calculated accordingly.

What are the tax benefits of your home loan?

 Under Section 24, you are empowered to claim up to Rs 200000 or the actual amount of repaid interest. However, you can only make the claim when you are in possession of the house.

 Under Section 80C, you can claim the principal up to the maximum limit of Rs 150000 across all the investments made under the section 80C. However, you might be needed to show the lender’s statement showing the not only the interest and principal components but also the repayment for the year.

How can a new homeowner avoid property tax traps?

Every homeowner should go to the pains of confirming the tax rate before signing on the dotted line to save himself from the reassessment and hikes of rate of interest. The estimate of a real estate broker of the approximate tax bill might prove to be helpful but even then you might be required to pay more tax in the subsequent years. You can potentially open up an escrow account in order to set apart the funds that would be drained to provide for the taxes.