Second Home Loan? Ask Three Questions Before Deciding

You can apply for a second home loan while still paying your first one in India.

A bank will decide whether you can handle the extra payments.

Before applying, ask whether you could pay both loans if your income stopped for a year.

Also ask whether you would still want the property if its value did not rise for seven years.

Think about whether the loan would stop you from using money for education, retirement, emergencies or a business opportunity.

Keep enough cash that you can access quickly, because property may take time to sell.

If you plan to rent the second property, subtract all costs and empty periods from the rent you expect.

The main question is not only whether the bank approves the loan, but whether you can comfortably own the property.