Tue. Feb 20th, 2024

Who wouldn’t want a dream home? It’s also an asset that comes with definite returns over the years. Butyou can’t always raise the huge sum that is needed to buy the home. But nothing can deter you from realizing your dream: mortgaging old property is an option to have instant money.

Unlike a home loan, mortgaging old property will reduce the burden of a loan on your shoulder.

So, what is a mortgage loan? Suppose you have an old property that is not in use. You want to move to a new apartment with modern amenities. It’s possible to buy a new property without selling the old one. By providing you old property as collateral, you can borrow money from lenders.

Mortgage Loan Eligibility

Mortgage loan may vary from one lender to another. But there are some common factors that lenders should consider before approving a loan against property (LAP).

I. The borrower’s income: You must have a stable income for repaying the debt.
II. Previous repayment history: Previous records of repayment like credit card bills or any prior loan.
III. Current debts: Your current financial liabilities.
IV. The market value of the mortgaged property
V. The borrower’s employment status: Whether you are currently employed or between jobs
VI. Credit score
VII. Age
VII. Current financial standing

Lenders prefer to give loans to those who can pay off while he/she is still employed. That’s why the maturity age is set at 60 years for salaried individuals and 70 for self-employed professionals.

Note:Credit score is a summary of your credit history. Your CIBIL score varies between 300 and900. Anything above 750 is considered a good score. Anything below 500 is a poor score.

Mortgage Loan Documents Required

I. Application form with attached photo
II. Residential proof of current address
III. Valid photo identity proof
IV.Salary slips (at least 3) for salaried individuals, proof of business existence, certificates of educational qualifications for self- employed professionals
V. Form No. 16 for salaried individuals.Professionalsshould submit their last 3 years’ IT returns (self and business), last 3 years’balance sheets and P&L statements.
Businessmen should submit their respective business profiles, last 3 years’ IT returns (self and business), last 3 years’balance sheets and P&L statements.
VI. Bank statement of last 6 months for both salaried individuals and self-employed professionals.
VII. A cheque for the processing fee.

Mortgage Loan Benefits

I. LAP will reduce the burden of EMIs.

II. Depending on the lender, one can avail loans up to 60% of the market value of the property.

III. For mortgaged property, the tenure of repayment can be as long as 15 years

IV. Minimum documentation and quick disbursal is another facility of mortgage loans

V. Without selling your old property, you can arrange funds quickly.

Mortgage Loan- Interest Rate

The rate of interest varies from lender to lender. However, it starts at 8.8% onwards. For calculating the EMI amount, you may browse the internet for different types of mortgage loan calculator.


In a word, it can be said that a mortgage loan is here to help. It’s one of the best ways to raise money when the market shows a declining trend. The advantage of instant mortgage loan approval can turn into reality your dream of owning a home without selling the old property.

Other than banks, NBFC’s like Bajaj Housing Finance Limited offers a maximum loan amount up to Rs.3.5 crore. You can pay off the entire sum with interests over a maximum period of 20 years.

Bajaj Housing Finance also brings you pre-approved offers for personal loan, home loan, and EMI finance on different products and other financial services. Not only does this simplify the process of availing financing, but also helps you save on time.

By admin