Taking a home is a lifetime investment, and it requires meticulous planning. Top lenders across India offer housing finance at attractive interest rates to the borrowers. There are round the year deals and discounts on the interest rates, new project investments, PMAY scheme, etc. that will keep the borrowers on the winning side.
It has become the most preferred mode of finance to buy home and has completely taken over the traditional loan segment. When you apply for housing finance, there are a lot of factors that would determine your eligibility. It mainly depends on the applicant’s profile such as age, the age of the property & its market value, future anticipated value, income source, and existing debt, number of dependents, and their financial responsibility, credit history and your capacity to repay the loan.
There are a lot of borrowers who are eager to qualify for the desired amount, but many times they aren’t able to get the higher loan limits due to low salary or less Loan to Value (LTV) Ratio wherein your overall income is considered to repay the money which might fall short as expected from the lenders. Under such circumstances, applying for a loan with a co-applicant would be an ideal solution. Top-notch banks and housing finance companies consider a joint loan application, as it puts additional weight on your application when it comes to repayment. It will improve your overall repayment power, and you would comfortably get higher loan limits sanctioned. You can co-apply with your spouse, parents, siblings, or any other blood relatives.
Here are some benefits of considering a joint home loan application:
Higher loan eligibility: One of the obvious benefits is as a co-applicant total income is taken into consideration. This places a trust in the minds of lenders that you can comfortably make a loan repayment. Thus, it helps you buy a bigger home with affordable EMI options.
Special Concession for Women: An expert advice would be if you’re applying for a joint loan, the women applicants would yield special concession on the interest rates. Thus, to avail the benefits of lower interest rate deals, the woman should be the co-owner of the property.
Additional Tax Benefits – In a joint home loan, co-owners of the property both can enjoy tax benefits under section 80C, 24 of the Income tax act, 1961. As a co-owner you’re eligible for tax benefits given below:
Under section 80C, you can save up to Rs 1.5 lakh on the repayment of the principal amount.
You will also enjoy tax deduction up to Rs 2 lakh under section 24 (if its self-occupied property)
Lastly, if the property is rented out, then the interest amount will also be eligible for tax deductions.
Reroute this money to pay EMI: Saving on tax benefits can help you comfortably pay a couple of EMIs towards your home loans.
Joint home loans are an excellent way to bring to avail multiple benefits such as:
- Higher loan limits
- Low-Interest rate deals
- Easy and affordable EMI options
- Joint Tax Benefits under section 80C, 24B of Income Tax Act, 1961
- Quick and Easy loan sanctions
So, the next time when you’re looking to invest in property and want to avail a home loan, do apply for a joint home loan and enjoy lucrative interest rate deals and other benefits from reputed lenders across India. Compare quotes from leading banks and housing finance companies on top aggregators’ sites online!
Joint home loan is a viable option to crack the best housing loan deal.