What are Joint Home Loan Benefits that Married Couples Choose?
Housing finance extended by lending institutions rose by 0.8% from April 2020 to August 2020, a report from the Reserve Bank of India confirms. The demand for housing loans is expected to see steady growth in the upcoming months as well. The drivers of this growth can be attributed to several factors like affordable rates and property prices, alongside a cut in stamp duty by some states. Resultantly, this makes it a perfect time to avail a home loan for aspiring homeowners.
Nevertheless, to make the most of this favourable time, borrowers can further lower their home loan EMIs to a considerable scale by opting for a joint home loan. Typically, married couples make one of the most eligible applicants for this credit for various reasons. Most lending institutions favour the spouse of the loan applicant to be a co-applicant in case of a home loan availed jointly.
Thus, it is crucial for married couples to consider the benefits of a joint home loan before applying for a loan to finance their own property while deriving the maximum benefit.
Advantages of a joint home loan for married couples
The advantages of a home loan increase ten-fold in case the advance is availed jointly. Following are the reasons that substantiate its benefits.
Higher loan amount
The eligibility of a home loan to a great extent relies on the monthly income of the applicant. Thus, the amount of a joint home loan is likely to be substantial as the income of both applicants will be taken into consideration for eligibility determination. Nevertheless, the repayment of a hefty loan amount and eventually a high home loan EMI also becomes more manageable with a co-applicant by the side.
Shared debt burden
One of the primary benefits of taking a joint home loan is that co-borrowers can share the home loan EMIs between them. It will thus pave the way for an easy repayment of the loan and also make room to manage other liabilities efficiently.
Moreover, to calculate the EMI outgo, they can also use an online EMI calculator that reveals nearly accurate results.
Improved eligibility
Often it happens that a low credit score dampens one’s chances of availing a housing loan with ease. In such cases, if a prospective borrower applies for a joint loan with a co-applicant (spouse/sibling/parent) with better credit profile, lenders will sanction the loan. It will eventually lower the home loan EMIs to a considerable extent as well.
Nevertheless, based on their improved eligibility, they also can negotiate for a better home loan interest rate.
Availing this credit has also become more feasible with selected NBFCs that extend pre-approved loan offers. These offers expedite the loan application process and are also available on a range of financial products like home loans, loans against property, and several others. All one needs to do is enter the name and contact number to check the pre-approved offer.
Tax benefits
Another significant perk of availing a joint home loan is that both borrowers can claim for tax deductions on their taxable income when repaying this credit. Under Section 80C, borrowers can claim for tax benefits on a joint home loan of up to Rs.1.5 lakh towards principal repayment. Similarly, Section 24B allows them to seek an exemption of up to Rs.2 lakh on interest paid. More importantly, these exemptions are available to both the applicants individually.
Nevertheless, joint borrowers of a home loan are also eligible to claim tax deductions individually both on principal and interest payable.
Concession on stamp duty for women
To encourage more women to become homeowners, several states such as Punjab, UP, Haryana, Rajasthan, and others extend relaxations for women buyers on stamp duty. Moreover, several financial institutions also offer competitive home loan interest rate to women borrowers or homebuyers.
Easy succession of property
The transfer of property ownership is a time-consuming and lengthy process when it comes to an individual home loan. However, one can bypass this hassle by opting for a home loan availed jointly.
The succession of jointly-owned property is straightforward and easier compared to a standard property.
Nevertheless, like any other loan, a joint home loan also calls for the need to meet specific eligibility requirements. Thus, it will be better to assess your eligibility for the advance before you apply. You calculate your home loan eligibility in just a few clicks using an online eligibility calculator. Taking the aid of this home loan eligibility calculator, individuals can check the loan amount that they can derive based on their eligibility.
Reference links
https://housing.com/news/4-important-benefits-of-spouses-jointly-owning-property/
