Joint Home Loan: Buying a house is every Indian’s dream, but rising property prices make it challenging.
If you are also planning to buy your dream home, then a joint home loan can be a great option for you. Let’s know how a joint home loan can help you realize your dreams.
Joint Home Loan: A Wise Step
A joint home loan means that two people together take a loan for the same house. These two people can be husband-wife, siblings, or even friends. This many type of loan offers many benefits.
Great benefits of joint home loan
Ease in loan approval: If your credit score is weak, then your partner’s good credit score increases the chances of getting a loan.
Higher loan amount: By combining the income of both, the bank can approve a higher loan, so that you can fulfill the dream of your favourite house.
Less EMI burden: The income of both reduces the burden of EMI, which does not affect your pocket much.
Big tax savings: Both people can claim tax exemption, which will increase their income.
Secure future of property: The ownership of the property is in the name of both, which provides legal protection.
Save tax up to 7 lakh rupees
Income tax benefits are also available in joint home loans. On applying for a joint home loan, both borrowers can avail of separate income tax benefits.
But this benefit will be available only when both the applicants are also the owners of the property. You will get double the tax benefit if you take a joint home loan with your wife.
Both of you can claim upto Rs 1.5 lakh each on the base principal amount, i.e. a total of Rs 3 lakh under 80C.
On the other hand, both can get a tax benefit of Rs 2 lakh each on the interest under section 24.
In this way, you can get a total tax benefit of up to Rs 7 lakh. However, this will also depend on how much your home loan is.
Precautions while taking a joint home loan
Division of responsibility: Both will have to pay the loan installment equally, so both should have a good income.
Legal agreement: Before taking a loan, make sure to get a legal agreement between the two.
Pay attention to credit score: Both should have a good credit score.
Who is eligible for a joint home loan
Indian citizen
Minimum age 21 years
Stable source of income
Good credit score