Are you someone who wishes to purchase your dream home? Well, then you might want to consider taking a housing loan to make things easier. But what if we told you that there’s yet another way to ease your burden a little? That’s right.
Taking a shared home loan instead of an individual loan is what you would need to do. There are a whole lot of benefits to taking a joint loan.
A joint loan will not only help you share your financial burden, but it will also allow you to acquire a larger loan because co-borrowers income will be taken into account. You would be surprised to know that up to six co-applicants can take out a combined loan?
What is a joint Home Loan?
A joint house loan is taken out with the help of a co-applicant to qualify for a larger loan amount and to share the financial load evenly. The term “co-applicant” refers to a loan taken out jointly in the names of two or more people, one of whom is the primary applicant and the others are secondary applicants. A home loan calculator can easily understand the procedure and reduce any or all kinds of confusion.
An applicant can apply for a joint house loan with his or her spouse, parents, or siblings. A borrower is not allowed to take out a combined house loan with just anyone. It’s given to married couples or blood relations like parents and children.
Benefits of availing of a joint Housing loan
Only one of the two (husband or wife) may be eligible for a loan at a time, but the loan amount may be insufficient.
In this instance, the husband and wife can take out a joint home loan. It resolves the couple’s problems, and they can settle the payments collectively. A shared home loan has several advantages. We’ve put together, a few of the most important benefits for you.
- Tax benefits
A shared or joint housing loan is particularly advantageous from a tax standpoint. This is because all co-borrowers can claim tax deductions under Section 24 of the Income Tax Act for interest paid and Section 80C for principal paid.
When two people take out a joint house loan, each assessor who pays income tax can take advantage of tax benefits which are offered under the Income-tax Act of 1961 on a proportionate basis for the principle and interest paid throughout the financial year.
- Discounts and Accessible Affordability
In India’s major cities, property prices are often higher. As a result, applying for a loan collectively would make more sense. The joint home loan eligibility is higher when the husband and wife’s incomes are combined.
Not only is the principal and interest repayment burden reduced, but the pressure to repay the loan is also shared.
- Succession benefits
The transfer of property succession is a lengthy and time-consuming process. For a hassle free transfer of ownership in the property owner’s death, married couples should own the property together. There is no dispute of succession, and the survivor automatically becomes the legitimate owner of the property.
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Now that you’re aware of the four main benefits of owning a property with a partner, as well as the tax benefits of a shared house loan, you’re ready to get started. Taking out a home loan as a husband and wife is the most acceptable option.