Do you have queries related to any aspect of home loans?

Gaurav Mohta, chief marketing officer, Home First Finance Company (external link) will answer your home loan queries.

Chandru: I took Home Loan from HDFC and Top up loan (For that Home loan). I closed the Main Home loan. Can I do balance transfer to other Lender for the Top up Loan (Only Top up Loan which is not Mortgage)? 

Gaurav Mohta: A top up loan by definition is a loan given by your lender over and above your regular home loan for additional expenses incurred. Since your current lender has lent it to you on the basis of your creditworthiness and payment history, a balance transfer in this case will not be possible.

Only a home loan borrower can apply for a top up loan. Instead, you can take a personal loan if the amount is smaller.

If you close your existing home loan plus top up loan and need some funds for some use, you can apply for a loan against property separately from another lender. This option will be suitable for a larger amount and a longer tenure. 

Kashi Nath Mehrotra: My ancestral property is long 1945. We are residing here. We are three brothers and we want to get a loan on this property. How should we proceed? What kind of papers will be needed?

Gaurav Mohta: Loan against property is a secured loan provided by lenders against residential or commercial property. While banks will probably lend you up to 50-60% of your property value on loan, private lenders can probably offer up to 80%. 

In order to prove your eligibility for the mortgage loan, the following documents will be required:

  • For Identification, you will require a PAN card, Aadhar card or a Voter ID Card
  • For Address Proof, your passport, Aadhaar card, voter ID card, landline bill, registered rent agreement or driving license will suffice
  • Your proof of income depends on the type of work you are in. If you are a salaried person, your bank statement and ITR form will be required. If you are self-employed, you must have your last three year’s ITR, profit and loss account of your business/ trade and the balance sheets of the same audited by a CA.
  • If you are taking out a loan on a commercial property, you’ll require an ownership/ lease/ rent agreement/ utility bill

You will also require the following property documents:

  • The Chain of Past Sale Deeds, Registered Sale Deed or Conveyance or Lease Deed
  • The latest house tax return or a receipt of your building plan approved by the municipal corporation

You can find more of Mr Mohta’s answers here.

Note: The questions and answers in this advisory are published to help the individual asking the question as well the large number of readers who read the same.

While we value our readers’ requests for privacy and avoid using their actual names along with the question whenever a request is made, we regret that no question will be answered personally on e-mail.

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