loading live map...hang in there
CLOSE
Take a Joint Home Loan with Your Spouse to Avail Various Benefits
25 Sep 2019
Description

According to experts, 2019 is expected to be quite profitable for individuals looking to invest in purchasing a house. Especially with financial institutions offering more affordable interest rates on home loans, it has become much easier to avail funds to buy a property. 

However, even though availing home loans has become much easier than before, there always remains a chance that your application might get rejected by the financial institution if you do not meet their eligibility criteria. In that case, a joint home loan might be able to increase your eligibility to avail the advance, alongside providing a plethora of benefits.

What are the benefits of availing a joint housing loan?

A joint housing loan is one where 2 to 6 individuals apply jointly for this advance. You can apply for a home loan with your spouse or any other family member. As a result, the repayment liability also gets distributed among co-applicants equally. 

There are several benefits of availing a home loan with your spouse. For instance - 

  • Eligibility to avail a higher loan amount

Since the loan amount sanctioned depends on a borrower’s ability to repay it, financial institutions usually extend a higher loan amount for a joint home loan. Since the income of all co-applicants is pooled to repay it, lenders automatically increase the amount you can avail. 

It also helps to reduce the repayment liability to quite an extent. You can utilize a home loan eligibility calculator to calculate your chances of availing a home loan with your spouse.

  • Income tax benefits

The biggest advantage of applying for the advance jointly is the tax benefit on a joint home loan. You can avail income tax benefits under the following sections of the Income Tax Act, 1961: 

  • Section 80C - You can avail a rebate on the tax of up to a cumulative principal amount of Rs. 3 Lakh under the Income Tax Act. However, you should note that the exempted amount cannot be greater than the principal. 
  • Section 24(b) - You and your spouse can also avail tax benefits of up to Rs. 2 Lakh. However, you can avail the benefit on a maximum amount of Rs. 4 Lakh. Also, the exempted amount cannot exceed the actual amount of interest paid to your lender.

Also, you can claim an additional income tax exemption of up to Rs. 1.5 on the loan interest paid under Section 80EEA provided you have availed the financing under an affordable housing scheme.  

  • Higher interest rates for women co-owners

Some financial institutions also offer discounts on present home loan interest rates for female borrowers. This discount can be availed if a woman is the owner or co-owner of the property along with being an applicant or co-applicant for the housing loan. 

  • Advances are available more easily 

The chances of availing home loans with your spouse are much higher than if you apply alone. Since the repayment liability gets distributed among two or more individuals, the risk of defaulting is considerably lower and financial institutions approve of these advances much faster. 

In addition to these, your credit score can also get affected when you apply for a joint housing loan.

Who is eligible to become a co-applicant for this advance?

You can avail the benefits above when you consider owning a property with your spouse with a joint housing loan. Apart from your spouse, you can co-apply for a housing loan with your parents, siblings and your son or daughter. However, your daughter has to be married and have the primary owner of the property to be eligible to become the co-applicant of the advance.

Before you apply for the advance, make sure to calculate the repayment amount by using an online EMI calculator for easy calculation. Also, check the documents required to make sure that the documentation process for the advance goes without any hassle.

Tags
home-loan-interest-rates housing joint-home-loan loan loan-with-spouse
Comments (0)