Mayfair Group
Global Investments – Local Reach
Mayfair Group has developed a unique and simple way for investors to capitalise on the Global Real Estate downturn.
We Specialise in hands free investments that can provide investors Gross Yields of up to 25% per Annum. Our Investment properties offer up to 50% equity from day one thus giving our investors strong return on investment.
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Housing Loans FAQ'S
Q. What is the maximum limit of Housing Loan one can apply for?
A. The maximum limit of housing loan that can be sanctioned ranges from Rs. 10 lakhs to Rs. 1 crore, depending upon the person’s repayment capacity and the level of income. Anyone seeking for a bigger amount of loan can also include the spouse’s level of income to show the total household income on an annual basis.
Q. What is the maximum limit of loan amount that can be borrowed?
A. The maximum limit of loan amount that can be borrowed depends on factors, such as loan purpose, residential status of the applicant. A Resident Indian can borrow up to 85% of the cost of the property, including cost of land, amounting to Rs. 5,000,000.
Q. Are NRIs eligible to obtain loan from banks/financial institutions?
A. Yes.
Q. Do banks finance premiums?
A. Yes, banks finance premiums on the basis of the prevailing market rate.
Q. What properties do banks/financial institutions finance?
A. For residential properties, banks finance almost all good builders at 85% of the loan amount. For commercial properties, only a selected few builders can avail for about 65% of the loan amount.
Q.What tax benefits can I avail if I opt for a housing loan?
A. According to the Income Tax Act, the tax benefits are available on both the principal and interest amounts of the loan. The upper limit of annual deduction of interest repayment amount from the gross total income of the applicant is Rs. 75,000. Section 88 also offers additional tax benefits for principal repayments. Under this section, the principal repayment amount included is Rs. 10,000 in the overall limit of Rs. 60,000.
Q. What is meant by Reducing Balance?
A. Reducing Balance is the technique of reducing the amount of principal already been paid, from the outstanding loan amount. The interest payments are made on the remaining amount of the original principal after the deductions are done.
Q. Which of the two housing loans is a cheaper and better option to consider, monthly reducing balance, or annual reducing balance?
A. Firstly, you must compare the EMIs and the tenures of the two housing loans. The loan carrying comparatively lower EMIs for the same tenure, would be a better option to consider.
Q. What is meant by Fixed Rate Home Loan?
A. A Fixed Rate Home Loan is referred to as a loan where the rate of interest remains constant during the entire tenure of the loan.
Q. What is meant by Floating Interest Rate?
A. A Floating Interest Rate is referred to as a loan where the interest rate due is linked to the current bank lending rate. The interest rate payable will be directly proportional to the fluctuations in the bank rate. The floating interest rates offered are generally lower than the fixed interest rates.
Q. How would you define Home Extension Loan?
A. A Home Extension Loan can be defined as a loan, which can be availed after obtaining the requisite approvals from the municipal corporation, to meet the expenditure for home renovation or modifications (if any).
Q. What is meant by a Home Improvement Loan?
A. A Home Improvement Loan is basically meant to help those who wish to make some external repairs, such as structural repairs, waterproofing, etc, or internal maintenance, such as tiling, flooring, plumbing, electrical work, painting, etc.
For further information contact us on info@mayfair-group.com