I am 29 years married and reside with wife and son in Bengaluru. My father for whom I am a single child owns some land on the outskirts of Bengaluru. I want to build a house on this land which is in my father's name. I want to know if the bank will give me a home loan in my name or do I have to change the ownership of this land. A colleague has told me no bank will give me a home loan to build my house as I am not the owner. Is this true?
You can take a home loan from the bank, but the land owner (father) will have to be a co-borrower of the loan. Your father will have to give a NOC for building the house on this land. Your father cannot sell , gift , transfer or create third party rights on the house without bank consent. It is advisable to get the property transferred in your name either by your father executing a registered gift deed or settlement deed in your favor. See if your father is willing to do so as you are a single child. By this you can relieve your father from becoming a co-borrower of the loan. Only owners or co-owners are eligible for tax benefits on the repayment of a loan taken to acquire or construct a house property. If your father transfers the property to your name, you will enjoy tax benefits on the EMI (principal and interest component) on the home loan.