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HomeFinanceCan I get a home loan for an old house or resale...

Can I get a home loan for an old house or resale flat?

Buying a new or under-construction house has been a common trend in India. However, there is a large market for property resale, and buying old or used homes quickly becomes an accepted norm. Moving into a home which you can call your own gives you the highest level of satisfaction.

home loan

If you plan to buy a used apartment, arranging a home loan will not be an issue. Many banks and financial institutions offer home loans for the same. Here are the various aspects you need to know while applying for a home loan against a resale flat.

Loan eligibility criteria

How to apply for a home loan?

  • You can apply for the resale home loan both individually or jointly. The co-applicants can either be the spouse or any close family members.
  • These home loans can be applied through online and offline options.
  • Once you have applied for the loan, a certified chartered engineer may survey the resale flat or home you wish to buy. If done, the engineer will prepare a report and send it to the lender. They will calculate the valuation, amount and you may receive 70%-90% of the valuation amount as your home loan, depending on the loan to value ratio of the lender.

Home loan terms

The home loan interest rates and tenure depend on a variety of factors such as,

  • Borrower’s profile
  • Borrower’s age at the time of loan maturity
  • Scheme of repayment
  • How old will be the property at the time of loan maturity

Type of home loan interest rate – The interest rate is determined at a floating or fixed rate, or the lender makes a combination offer. The home loan interest rates for a resale flat can start from as low as 6.9%, depending on the prevailing rates at the time.

Documents required for the approval of the home loan of resale property

  • Home loan application form correctly filled and signed
  • Passport size photo of the applicant(s)
  • Identity proof
  • Residence proof
  • Business establishment proof
  • Income proof
  • Property documents
  • Bank statement


Resale apartments don’t come much cheaper than new ones. If everything fits, soon you can have a home ready to move into! Therefore, use a home loan EMI calculator to figure out the EMI burden on your monthly budget.

Irving Frazier
Irving Frazier
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