Each of us dreams of owning a house. To achieve this, many people save every penny over a long period. However, buying a house by paying a lump sum amount remains a challenge for most. In such cases, taking a home loan becomes the easiest way to purchase or build a home.
When opting for a home loan, you can also consider a joint home loan. It is often easier to obtain compared to a regular home loan. Additionally, the loan amount can be higher. If both husband and wife are working professionals, a joint home loan is an excellent option for them. Throughout this article, we will tell you all the details regarding how to take home loans.
With whom can you take a joint home loan?
You can take a joint home loan with anyone. But, having a female joint applicant is more beneficial. Husband and wife can take a joint loan together. If the man is not married, then he can also make his parents or sister as applicants.
Tax Benefits on Joint Home Loans
If you apply for a joint home loan with your wife, both of you can claim income tax benefits under Section 80C. You will each get a separate tax exemption of ₹2 lakh on interest for prepayment. Additionally, a maximum tax exemption of ₹1.5 lakh can be availed on the principal amount within a year.
Concessional Interest Rates for Women Homebuyers
Many banks and NBFCs offer home loans at concessional interest rates for women buyers. These rates are typically reduced by 0.05%. There are also exemptions in stamp duty and registration fees if the property is in the name of a woman. However, these benefits are only available if the woman is a co-owner of the property.
Additional Discounts for First-Time Homebuyers
First-time homebuyers can avail an additional deduction of ₹50,000 on home loan interest. For this, the loan amount should not exceed ₹35 lakh, and the property price should be under ₹50 lakh. To qualify for an additional discount of ₹1.5 lahks on interest, the stamp duty value should be ₹45 lakh or less.
Improvement in Credit Score
Taking a joint home loan can improve the credit score of both applicants, as home loans are considered the most secure type of loan. If both spouses are professionals, sharing the EMI responsibility ensures that the financial burden does not fall solely on one person.