A Complete Guide to Getting a Second Home Loan

Your guide to getting a second
home loan
Whether you’re planning on buying a second home as an
investment, a holiday home or anything else, make sure
your finances can support you. Getting a second home loan
is more difficult than the first, with more stringent
procedures. Make sure you have a good credit record and no
on-going EMIs or loans. If you want to know how to qualify
for a second home loan, our guide will lay out the facts.

Know how to qualify for a
second home loan
To qualify for a second home loan, you need
to be free of any financial constraints. Any
kind of loans that you are paying off at the
time of applying for a second home loan
should be paid in full so your monthly expenditure
can make room for your second
home loan payments. The lesser amount you
ask for your second home loan, the easier it
will be to avail it.

Calculate the amount you
can avail
When you apply for a second home loan,
lenders will usually not lend you more
than 75% of the total cost. Plan for the
remaining 15% from your savings. To
make sure your monthly income can
bear the EMIs, be sure you are not
spending more than 35% to 40% of your
pre-tax income in loan payments.

Be aware of the kind of property
you choose
The value and location of your new property
makes a huge impact on whether your
second home loan will be sanctioned or not.
Your lender will look at the future market,
keeping in mind the long-term investment. If
the property you have chosen has scope for
capital appreciation, your chances of getting a
second home loan improve.

Be frank about your plans for
the second home
Maintaining transparency is another thing
that makes it easier for the loan to be
sanctioned to you. Be frank about your
plans for the house, whether it is an
investment, for renting out or any other
purpose. This avoids any penalties or
hurdles in the future.

Opt for a joint home loan
Your second home loan will be much easier
to avail if you apply for it jointly with a family
member, be it a parent, a sibling or your
spouse. This is because a joint home loan
spreads the repayment burden on more than
one individual, and becomes less risky for the
lender. This is especially true if your loan
co-applicant is also an earning member or a
salaried individual.

Be prepared with the
right documents
The documents required for a home loan
application are proof of identity and
residence, proof of education, proof of
employment, salary slips or bank
statements for last 6 months and income
tax returns. These documents are essential
for revealing your credentials and income,
and play an important role in getting your
second home loan sanctioned.

Reasons to apply for a second
Home Loan from Bajaj Finserv
- Avoid high interest rates
- Affordable down payments
- Easy and hassle-free process
- Minimum documentation
Click here to apply for a second Home Loan from Bajaj Finserv
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