How Many Home Loans Can One Person Have?

You might be curious about how many loans you can take on if you want to increase your real estate investment portfolio or prefer to add more holiday homes to your personal account than your principal property. Check out the article to get a thorough summary of how many houses you can purchase and How many home loans can one person have.

If you make wise choices along the way, purchasing numerous homes can be a terrific method for you to build your holdings and make money. 

Before you make that leap, you might want to closely analyse your capacity for handling several mortgages and evaluate your level of experience.

How Many Home Loans Can One Person Have?

Owning a home is something to be proud of, especially in major cities with expensive real estate. While some people must have a home loan, others plan ahead and make the appropriate investments. 

People do contemplate seeking a second home loan after receiving the benefits of one, for a variety of reasons.

There is no rule in India that prevents you from servicing more than 1 home loan at a time, so you can have whatever many you need. 

You can obtain five separate home loans from five separate lenders if you wish to buy a number of properties at once, let’s say 5. 

However, you won’t be approved for a loan until your lender has carefully evaluated your eligibility for a house loan, particularly your ability to repay it.

To get more than one home loan you must maintain an excellent CIBIL score. Also, the ratio of your debt to income must also be appropriate.

Top Banks for Home Loan In India

Here is the top bank to apply for a home loan in India.

How Many Home Loans Are Eligible for Tax Exemption?

In India, there is not any regulation about having more than one home loan. Any individual can opt for more than one home loan if fits the required eligibility criteria. 

The tax deduction is available on more than 1 residential property. 

It also makes no difference whether the residential properties are owned by the owner or rented out.

In conclusion, section 80C allows income tax benefits for principal repayment on second and first home loans of up to a maximum of Rs 1.5 lakh.

Tax Benefits on Second Home Loan

In view of the tax advantages, the second house loan stands to reason, particularly if rented.

Any individual can opt for a second house loan and claim Tax benefits.

Deduction Under Section 80C

Principal and interest are the two components of mortgage payments. 

Section 80C provides for a deduction of up to Rs 1.5 lakh for principal repayment.

The highest deduction for principal payments will never change, even if you have a second mortgage, and is Rs 1.5 lakh.

Also keep in mind that assets like ELSS, life PPF, etc. consist of the 80C deduction. This deduction is available for several residential properties. 

The self-occupation or rental status of the residential properties is also irrelevant. 

In conclusion, the 80C section allows income tax advantage for maximum principal repayments on second & first mortgages of Rs 1.5 lakh.

Tax Advantages Of Paying Interest

We must also take into account the interest payment deduction when evaluating the home loan tax advantage for a second home. 

Section 24 provides for a deduction on interest payments. If you just own one home, you can deduct up to 2 lakh rupees from your interest payments. 

There was no maximum amount that may be deducted for interest on a property that was rented out. 

However, starting with the 2019 Budget, you can count your second home as self-occupied. Therefore, it cannot be considered let out even though it is vacant. 

Let’s look at the tax advantages of second home loans in two separate scenarios.

• First home is occupied by the owner second one is unoccupied: The second property cannot be deemed to be rented out in accordance with the most recent budgetary provisions. Therefore, it will be assumed that both homes are occupied. There is a 2 lakh rupee limit on the interest claimed on both homes.
• The first house is a primary residence, while the other is rented out: The second property’s rental revenue must be disclosed. The 30% standard deduction, interest on the loan (with no upper limit), and paid municipal taxes are all deductible. Additionally, you may deduct up to Rs 2 lakh from additional sources of income. Over Rs 2 lakh in losses may be carried over for the following eight assessment years.

Eligibility Criteria For Home Loan 

Home loan qualification is outlined as a list of criteria on the basis of which a banking firm determines a customer’s ability to obtain and repay a specific loan amount. 

Age, financial situation, credit score, credit history, other financial commitments, and other factors all play a role in determining eligibility for home loans.

Income & repayment ability of the individual are the main factors determining eligibility for home loans.

Here are other eligibility criteria for Home Loan.

• Current Age & Remaining Employment Years: The age of the individual has a significant impact on whether they are eligible for a house loan. Typically, a loan can only be taken out for a maximum of 30 years.
• 21 – 65 Years is the age limit for salaried or self-employed individuals. 
• The minimum salary must be Rs 10,000 and 2 Lakh per anum min business income.
• The maximum Home loan Tenure available is 30 years.
• A faultless payback history is regarded positively in terms of credit history, both past and present.
• Other Financial Liabilities: Current debts like a vehicle loan or credit card balance.

You can also calculate your eligibility using the home loan eligibility calculator.

Tips for Managing Multiple Home Loans

• When you have several home loans to pay off, you may need to develop a decent strategy for keeping track of them all. In fact, especially if you choose a nontraditional loan option, you might not want to depend on your bank to keep records of the amounts you owe. 
• You might wish to “dig deep” and learn the principle balance, payout schedule, and forward and backward payment schedules for each property.
• Additionally, you might not have a similar lender for each of your homes, which can call for additional planning. 
• Even the dates of your mortgage payments may vary depending on which lender you use.
• Depending on your preference, you may either space out the due dates for your payments or ensure they all fall on the same day.

Also Read, How To Choose Home Loan Tenure? Long-Term vs Short-Term

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