INTERVIEW QUESTIONS LOAN HOME LOAN DETAILS

Question: What is the maximum LTV for home loans? Who decides the value of the property, the bank or the borrower?

Answer: Banks will decide on the quantum of funds available for lending depending on their estimation of the property. According to NHB rules, banks usually offer a maximum LTV of 80% of the property’s market value. Therefore if banks judge that your property is worth Rs. 50 Lakhs as per their valuation, the maximum home loan you may get would be about Rs. 40 Lakhs.

The onus of raising the remaining amount rests with the borrower. Banks have their own in-house team of real estate experts that decide the final value of the property. There can be a possible difference in valuation of the real estate property and therefore it is a good idea to get your property valued from a certified valuator to know the right market price for your property before applying for the home loan.

Banks will decide on the quantum of funds available for lending depending on their estimation of the property. According to NHB rules, banks usually offer a maximum LTV of 80% of the property’s market value. Therefore if banks judge that your property is worth Rs. 50 Lakhs as per their valuation, the maximum home loan you may get would be about Rs. 40 Lakhs.

The onus of raising the remaining amount rests with the borrower. Banks have their own in-house team of real estate experts that decide the final value of the property. There can be a possible difference in valuation of the real estate property and therefore it is a good idea to get your property valued from a certified valuator to know the right market price for your property before applying for the home loan. Source: CoolInterview.com

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