*Since I already have a home loan, can I take another home loan to buy a small property? Also, is it advisable to take the second loan from the same bank or I can try some other bank as I have a clean record of repaying?
—Gautam Pandey

Yes, you can avail of a second home loan to buy another property from another financial institution or from the same lender depending on your experience with the institution. The home loan eligibility will be based on your income and repayment track record. Your income should be enough to justify timely repayment of both the home loans. If you own two houses, you can declare one home as self-occupied, while the other to be considered on rent. The estimated rent on the second home will be added to your income, which will enhance the eligibility on the second home loan. You could also avail of certain tax benefits on your second home loan.

*My mother wants to sell her property and give me my share of the money. Can I buy it by paying her the rest of the money by taking a bank loan and taking out my savings?
—Ajay Bhaskar

Yes, you can buy your mother’s property by availing of a home loan from a financial institution depending on your eligibility criteria. You will also need to ensure that the property is registered and all the required documents are in place to avail a home loan. Financial institutions check the eligibility criteria and the capacity to repay the home loan before providing the loan. Also, there are certain parameters that you need to fulfil to avail a home loan on ancestral property.

*What is the process of balance transfer of loan?
—N Ramachandran

Interest rates are important but not the only factor while finalising your home loan lender. While opting or switching to another lender, a borrower should conduct a comparative study of the financial institutions and consider factors such as the pedigree of the financial institution, reputation, customer service and operational efficiencies, principal amount, loan eligibility, loan tenure, processing fee, file charge, stamp duty, insurance, EMIs and conditions. In case of any concerns with your current lender, it is advisable to discuss so that you can avail the best deal without shifting your home loan.
Be cautious before taking a balance transfer decision.

The author is JMD & CEO, DHFL