27 OCTOBER, 2021

When you look forward to purchasing a house for yourself, there are two options: You can either buy a resale house or opt for a new property from a builder. While a new house might provide you novelty and freshness, a resale home gives the gift of familiarity and coziness. However, for buying a resale house, you need not wait for months to get possession of the property. But, you might have to face some legal implications or complete additional formalities. For example, while availing a home loan to buy a resale house, you might need to furnish additional documents and approvals. Therefore, you must be extra careful while purchasing a resale house.

If you are planning to buy a resale house using a home loan, this guide can help you.

What Is a Resale House?

A resale house is a residential property that you buy from an individual seller. Resale property means the seller has owned the house earlier and it has been allotted to the seller by the builder or another seller. The property is not brand new and you as a buyer need to ensure that it has no legal implications.

Home Loans for Resale House

There could be additional processes and documents that you need to fulfil before availing a housing loan for a resale house. Before approving the loan application, the lender usually sends a verification team to inspect the house.


There are certain home loan eligibility criteria for the resale house, like minimum and maximum age, income, employment stability, etc. However, the property’s value and borrower’s age holds prominence. To avail a home loan for a resale house, you must be at least 18 years of age and not more than 60 years of age. But, lenders may decide to stretch the loan tenure if you have an excellent credit score and mortgage insurance. Moreover, the property should not be badly maintained, old or battered. Lenders usually approve a housing loan for a property that is new or is in a good condition.

Documents required

You might have to submit additional documents while buying a resale house. Therefore, you must check with your lender while applying. The following is the list of property documents you need for a home loan:

  • Title deed
  • Sales deed
  • Encumbrance certificate
  • Building plan
  • Occupancy certificate
  • No Objection Certificate

Bottom line

While applying for a home loan for resale property, you must ensure to take note of the document trail of the property to know the change of ownership. It is imperative that the resale house has no pending mortgage and the seller has a clear title on it.

If you fulfil the home loan eligibility and furnish the required documents, it is not challenging to avail a housing loan for a resale house. However, you must ensure that it has a clear title and does not require major renovation or repair on the property. Once you have completed all the checks and are assured of your choice, you can visit the home loan page and apply for home loan today.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.