Joint Home Loan

Owning a house of one’s own is everyone’s dream. And most people take home loans to make that dream come true. You can opt for a joint home loan to increase the quantum of the loan and purchase a better property. 

Here we will discuss the benefits, eligibility, and documents required to apply for a joint home loan.

Joint Home Loan

What is a Joint Home Loan?

A joint home loan is when two or more people apply for a loan as co-applicants to buy a house. Banks allow a maximum of 6 co-applicants for a home loan. They can be close relatives or family members, and they can share the responsibility of paying off the loan. 

Your eligibility improves when you add a co-applicant who has a good credit score. This way, you can apply for a bigger loan and enjoy better tax benefits. 

Is a Co-owner and Co-applicant the Same?

No, a co-owner of a house and a co-applicant of a home loan are not the same. A co-applicant doesn’t need to be a part-owner of the property. Only a co-applicant’s income is considered for loan approval. However, a co-owner needs to be a co-applicant if the house is being purchased on loan.  

Please note that these conditions may vary depending on your bank.

What are the Benefits of Taking a Joint Home Loan?

There are many benefits of taking a joint home loan. Let’s discuss a few of them -

  • Higher Loan Amount

The joint income of all the applicants will make you eligible for a higher loan amount. This will, in turn, help you relax your budget and you can invest in a bigger and better property.

  • Tax Benefits

All applicants will be able to claim tax benefits of buying a property separately. This will mean that you save more money on taxes, depending on how much portion of the loan each is paying.

  • Special Interest Rates 

Banks often have lower interest rates and run special offers for women applicants. You can avail of these if your co-applicant is a woman.

  • Share Responsibility

Home loans generally have long tenures and paying them on one income requires a high level of planning. If you have a co-applicant, you will be able to share the responsibility of loan repayment, and not burden yourself.

Who can Apply for a Joint Home Loan?

There are certain terms and conditions when it comes to who can be a co-applicant on a home loan. The specific rules will depend on your bank. We have mentioned the most commonly followed regulations.

You can take a joint home loan with the following people -

  • Spouse

  • Sibling

  • Son

  • Unmarried daughter

  • Parent

  • Close family member

The following criteria need to be followed by both applicants to be eligible for a joint home loan - 

  • They should have a separate income source

  • The age of the older person will be considered under the age criteria

  • One of the applicants may be a non-resident Indian

  • Both should have a good credit score, preferably above 750

  • Their debt-to-income ratio must be low

Documentation Required for a Joint Home Loan

The documentation required for a home loan will depend on your bank. But in general, all applicants are required to submit the following documents -

  • Proof of identity

  • Proof of address

  • Proof of income (depending on your employment type: salaried or self-employed)

  • Property documents, like NOC, and sale documentation

  • Proof of co-ownership (if applicable)

Conclusion

Joint home loans are a great way to share the responsibility of a home loan and pay it off easily. You can take a joint home loan with any earning family member or close relative. 

They work just like regular home loans. The only difference is that all applicants have to submit their documents and fulfill the eligibility criteria. Joint home loans reduce the burden of repaying the loan and enable you to increase the budget for purchasing a property.

You can now also take affordable home loans from Moneyview starting at only 8.5% p.a. 

Joint Home Loan - Related FAQs

Yes, banks allow up to 6 co-applicants for a joint home loan.

Yes, siblings can take a joint home loan.

It is always a good idea to take a joint home loan if you have the option.

Ideally, the EMI of a joint home loan is to be paid by all the co-applicants. This will also help them all claim the tax benefits.

If your bank will convert your home loan to a joint home loan will depend on the terms and conditions of your bank. However, most banks will easily convert your home loan to a joint home loan upon request.

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