Key Benefits Of Taking A Joint Home Loan

Posted by Tushar on March 24th, 2021

Home is not a phenomenon with the individual one. It is all about family, togetherness. Buying a home is also matters for the whole family. Along with the opinions, contributions as well matter from each member of the family. Furthermore, efforts from all members result better than effort from an individual only. Let's get familiar with the key benefits of taking a joint Home Loan. 

Immediate earning family members can be co-applicant for the joint home loan. Application with the co-applicant helps in many ways and can be more beneficial. It is one of the ways to increase home loan eligibility as well as amount too. 

The lender checks the income of the individual. Consequently, you may have a higher amount for a loan. 

Home is a one-time investment for most of us. Hence it is normal if one wants a big dream house, better facilities in an affordable manner. Applying jointly may offer more affordability. Siza, location, and quality, three of the criteria can be affordable for you. Home loan eligibility depends on various parameters like age, income level; another loan one is repaying, etc. 

Relief one can have with a joint home loan are as below

• Increment in the amount of home loan

• Increment in chances of being eligible for a loan

• Chance to have a big dream home. 

• Getting your home in the desired location 

• Discounts from higher tax benefits 

• Sharing in loan repayment

Let's see the major benefits.

Higher Loan Eligibility 

Income is one of the factors that affect the amount of loan. Higher the income, the higher the loan amount. By pulling the income of the applicants together, they can have a loan of a higher amount. A higher amount helps to have a big dream home. 

Tax Benefits 

Deduction on tax comes along with the joint home loan. Each co-applicant can have the benefit of deducted tax. 

• Principal repayments are qualified for deduction under section 80C of the Income Tax Act. The limit for that is up to a maximum limit of Rs. 1.50 lakh. 

• If space is self-occupied, there is a reduction in interest rate under section 24. Limit for that is up to Rs. 2 lakh. 

• If space is letting outed, then the sky is the only limit. The whole amount of interest may have a deduction benefit. 

In this scenario, all individuals can have the benefit of the deduction. But, the collective advantage is higher than the individual one. The amounts for a reduction for an individual depend on the amount that the individual will contribute to the repayment of the loan. 

Interest Rates for women co-owners:

Some lenders offer specially differentiated home loan interest rates for women customers. That is less than the usual interest rates. To have this discounted interest rate, women must have to be a joint owner of the property or co-applicant for the home loan. 

Conclusion 

Together we can do more and it is perfectly applicable here. From the above article, it is crystal clear that applying for a joint home loan is far more beneficial than applied individually. It is helpful in many of the terms. That is the amount of loan, interest rate, eligibility criteria, tax deduction, etc. Hence, taking a joint home loan is a more affordable way to have a dream home.