Did you apply for a home loan and it got rejected because your income is lower than the standard? If yes, you do not need to sit in the corner, sulking. Joint home loans are there to help you out of this situation. By getting co-borrowers for your home loan, you can get a higher amount of loan as the incomes will be clubbed for consideration. You can have up to 4 or 6 co-borrowers depending on the bank’s rules.
As all co-borrowers’ incomes are clubbed in case of joint home loans, you can avail a higher amount that you could not otherwise get as a single applicant. For example, if you are buying a property worth 1 Cr, the banks can grant up to 80% of the value i.e., 80 lakh. But if you fall short of the income slab, you can get a co-applicant whose income will also be considered along with yours to help you reach the limit. Women borrowers or co-applicants or co-property owners can also get benefit on the home loan interest rates.
You can apply for a joint home loan along with your spouse, parents or siblings but the rules might differ from bank to bank. Joint loans with your spouse and parents are the easiest to procure. However, you cannot bring friends or sister as co-borrowers.
Joint home loans follow a simple repayment process like the regular loans. Borrowers can pay back the amount through checks or electronic transfer. EMIs are shared among the co-borrowers and in case of legal action, all applicants are held liable. At the time of application, the borrowers have to enter into a Legal Liability Agreement that defines the liabilities of each party in case of disputes.
A joint home loan also gives you several tax benefits. Normally, you are allowed to have a tax deduction of Rs 1.5 lacs under section 80C and 2 lacs under section 24 of the Income Tax Act. But if you apply with your spouse, both of you are eligible for separate deductions. This means you two can together avail a tax benefit of 3 Lac and 4 Lac respectively. This is a major benefit of getting a joint home loan with your spouse instead of being a single applicant.
Thus, joint home loans not only open gates for you to get a better home with a higher loan amount, they also provide you with tax benefits. So, it totally makes sense to go for it.
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