Taking a home loan with your wife can prove to be beneficial in many ways. By taking a joint home loan, you get a good discount on the interest rate of EMI. Not only this, you can also save on income tax. The reduction in interest rate due to joint home loans has a direct impact on your EMI, which reduces the burden on your pocket. Along with this, the borrower’s loan-taking capacity also increases, so that you can buy the big house of your dreams. Let’s know what are the benefits of taking a home loan with your wife!
Great discount on interest rate
Usually, banks offer a uniform interest rate on home loans, but if a borrower takes a joint home loan, he can get a loan at a lower interest rate. According to the policies of various banks, taking a joint home loan can get a discount of up to 0.05 percent in the interest rate.
Apart from this, if you buy a house together with your wife, they must have ownership rights on the property so that this discount can be availed. Some banks also offer special interest rates to women applicants, which can lead to further savings.
Know how tax savings will be made
The biggest advantage of taking a joint home loan is that you not only get benefits on the loan, but you can also save a lot in income tax. Both co-applicants of a joint home loan can apply for separate tax benefits.
Under Section 80C of the Income Tax Act, both husband and wife can claim a deduction of up to ₹ 1.5 lakh each. Additionally, both can claim a deduction on interest up to ₹ 2 lakh under Section 24. This means that overall you can get tax benefits on loans up to ₹ 7 lakh, which can significantly reduce your total tax liability.
People with a low credit score will also get a loan
Many people have difficulty in getting a loan due to poor credit scores. In such a situation, you can resort to a joint home loan. However, in this case, the co-applicant must have a good credit score and a stable source of income. Banks can approve the loan by looking at the good credit score and income of the co-applicant, which also allows the main applicant to buy a house.
Both will have rights over the property
Taking a joint home loan also gives you many legal benefits. If you buy a house together with your wife, then she also has equal rights over the property. In such a situation, if any legal problem arises in the future, then both can face it together. This joint right of ownership protects the interests of both parties in case of any dispute over the property.