My wife is a doctor. If we take a home loan in her name, is their any advantage in eligibility, tax exemptions and procedures
The tax exemptions on home loans are identical for both males and females. The eligibility is a function of the income of the individual and not a function of the gender. The same applies to procedures, which is a function of the profiles of the applicant.
What are the rebates a customer normally gets for home loans
The rebates associated with a home loan are tax savings on the interest paid as well as on the principal repaid. The deduction of interest payable on a loan taken to buy a home is up to a maximum of Rs 1,50,000 every year under Section 24(b) of the Income Tax Act and the principal portion of a loan repaid to a bank will be eligible for deduction under Section 80C (along with other contributions and investments) up to a maximum of Rs 1,00,000.
Can one take a home loan for construction in one place while working in another city
Yes, one can take a home loan for construction in one place while working in another city. Ideally, you should apply for a home loan from your current city of residence. You should approach a bank which has branches in both cities as your residential and income status would need to be verified in one city and the propertys legal documentation and commercial valuations need to be done in the other city.
What is the procedure by which I can transfer my home loan Do I need to pay some extra charges
If by transferring a home loan, you mean selling your property on which you have a loan running, the answer is: Yes. You need to inform the bank about your intention to sell the property and the buyer needs to pay off your loan to the bank with his own loan or an alternate source of funds. The balance available after settlement of the loan outstanding can be paid out to you directly. The charges on a transaction like this are similar to pre-closure charges. Banks do have an option of waiving a part or all of these charges if new owners are also taking the loan from them.
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