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Joint Home Loan to finance your Property

How To Take a Joint Home Loan to finance your Property

Joint home loan. Everyone individual has a dream of having his own house. Buying your own house is a herculean task nowadays as it requires a huge investment in one time.

You alone may not afford to buy his own house but you can full fill the dream of having own house by taking a joint home loan.

A joint home loan is a housing loan which is taken by more than one person and the repayment is done with equal financial responsibility.

The co-applicant for the join home loan can be the family members, including spouses, siblings etc. The most amazing benefit of taking a joint home loan is you can avail a higher loan amount.

Your chances of home loan approval become higher than loan applied for an individual capacity. You will also get the benefit of exemption that comes with applying for joint tax savings.

Joint home loan


5 Benefits of taking a joint home loan


1. Higher loan eligibility

The applicants become eligible for a higher loan amount and afford a better home by pooling their income together while making a joint home loan application.

The banks and non-banking financial companies (NBFCs) combines income of both applicants involved, a proportionately higher loan amount of the loan will be sanctioned.

They are ready to offer a higher loan amount if you opt for a joint home loan because of the higher repayment capacity as there is more than one person who can repay the loan amount.

2. Higher Tax benefits

In a joint housing loan, you will able to get double benefits. Each co-applicant can claim up to Rs.1.5 lakh of tax redemption under Section 80C and deductions on interest payment under Section 24 of the Income Tax Act.

3. The special Interest rate for women applicant

Nowadays most of the lender offers special rates for women borrowers which are few basis points lower than the normal home loan rates. For taking the benefits of the discounted rate of interest, women must be a sole or a joint owner of the property.

4. Repayment responsibility

If you are unable to pay the amount due on the loan due to unforeseen situations, the Bank nor you have to fear about defaulting on loan payment since there is equally responsible Co-applicant who can pay the EMI.

The obligation of paying the equated monthly installments moves on another co-applicant. Each of you would have to make contributions in the joint account to make the payment for the monthly installments of the loan.

Another way of repaying the loan would be to share the EMIs between both the co-applicants. You both can mutually agree on a specific number of payments to be made by each of you and balance out the payment for coming years

5. A lower fee for registration

Every property requires a legal registration. It involves preparation of documents and paying the applicable stamp duty registration charges for the sale deed to be legally recorded at the sub-registrar’s office.

When you take a home loan jointly with female co-applicant such as your wife, mother, daughter, or sister. Many states also offer a lower fee for the property or deed registration.


Additional Reading: – Should you apply for Home Loan with a bank that has a tie-up with your builder?


So, above these are the benefits of taking a joint home loan. Consider all the points carefully before going for the joint home loan.

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