Should I pay existing home loan and then apply for second home loan ?

POSTED BY divesh_rathod ON April 14, 2014 9:41 am COMMENTS (2)

I already have a home loan. I am planning to purchase another home. Should I repay existing home loan and apply for new Home loan or apply for new Home loan with out repaying existing home loan. Please guide. Thanks.

2 replies on this article “Should I pay existing home loan and then apply for second home loan ?”

  1. ashalanshu says:

    Dear Divesh, why do you want to purchase 2nd property with home loan? What is the purpose of purchase?

    Thanks

    Ashal

  2. Raja says:

    Why not opt for a top up loan over your existing home loan and buy your other property with that. Off course all this depends on what is the outstanding loan amount, the amount you need for second home etc. Banks may even give you top up loan equal to the sanctioned amount of your first home loan or based on current value of your first home. Interest rate may be same as home loan or 1-2% higher. But advantage is that only one property gets mortgaged.

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