emi if you are 45 and due to retire in 15 years a lender will not give a loan for more than 1012 years but if you are 25 years old and have more than 30 years of working life left then the home loan tenure can easily extend to 20 years your salary structure is also a factor lenders dont take into account the allowances you get as part of the salary even though the amount is a part of your cost to company package if the salary is packed with perks and allowances your loan eligibility might come down other incomes like bonus and performancelinked pay may also not be considered by the banks if there is no confirmation of regularity while there is very little you can do to increase your income level or change your salary structure you can increase your borrowing capacity by roping in a coborrower here too lenders are not comfortable if the coborrower is not your spouse they feel that there could be disputes between siblings over the property ownership and the repayment liability its much safer if the coborrower is a life partner in fact some lenders go to the extent of sanctioning a loan to wouldbe couples though disbursement takes place only after the marriage is solemnised the lender will ask for a copy of the marriage certificate for disbursing the loan says harsh roongta ceo apnapaisacom tax benefits for borrowers the tax benefits available on home loans bring down the effective cost of borrowing the repayment of principal for a home loan for instance is eligible for a deduction of up to 1 lakh a year under section 80c this is especially useful for borrowers who are paying a huge emi and therefore dont have too much to invest in other taxsaving options but the icing on the cake is the deduction of the interest paid on the loan up to 15 lakh a year is deductible from the taxable income of the borrower under section 24b living in another city the home loan benefits are available if the house is for selfoccupation or if its given out on rent however a borrower can avail of the deduction even if he has bought a house in another city without losing out on the exemption for house rent allowance so if you work in mumbai but have purchased a home in nagpur you can claim a deduction under section 24b as well as an exemption for the house rent allowance received partial disbursement in some cases the disbursement of the loan is linked to the stages of construction of the property the tax treatment is different here this portion of the interest paid prior to the completion of construction cannot be claimed as a deduction in the year in which it is paid however the borrower can claim deduction for the interest under section 24b in five equal instalments after the construction is completed do note that the limit on