I am planning to buy a 2bhk flat in Delhi (resale flat 5 years old). Now the cost of the property is 70 lakhs. So usually I will get 85% of the property cost as a home loan, but the government cost of that property is 50 lakhs ( which is mentioned in the papers). Now will I get 85% of 70lakhs or 85% of 50 lakhs as home loan?

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Firstly, loan is decided on the buyer price, not the seller's original papers cost. If you're doing a transaction for 70lakhs (assuming all deal in white and seller agreeing to it), you'd get 85% of 70L.

Usually Delhi people will ask for some cash(black money deal) so you will negotiate basis how much cash you have. This price cannot be less than the circle rate of the property based on MCD rates of Uttamnagar. Say that rate is 60L. Then the seller need to necessarily show the sale price of 60L and accept 10L in cash. It is his problem how he turns it into white and your problem that you only get 85% of 60L.

I'm assuming by govt cost you mean current circle rate cost(Not the cost at which previous buyer got his house). So it totally depends on whether he is ready to accept 70L white money through bank/cheque. Then you get loan on entire thing and seller has to declare 70L-(Original price) as capital gains and pay 30% tax(if he doesn't invest in another property within 2yrs). Most people want to avoid this tax and hence take cash in black.

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Also I think it is 80% incase of private lenders. I negotiated with HDFC to loan 90% given my great credit score.

Depends on area ,which location u are buying ??

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Uttam Nagar.. But again how is it related to the loan amount?

Banks basically track the Land Registrar rates...I mean what government has decided in the documents is eligible for the home loan.

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Thank you

You'll get 85% of whatever amount you do the registry for. And in this case it's 50L.

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