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.
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.
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.
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 -
The following criteria need to be followed by both applicants to be eligible 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 -
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.
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Disclaimer
The starting interest rate depends on factors such as credit history, financial obligations, specific lender's criteria and Terms and conditions. Moneyview is a digital lending platform; all loans are evaluated and disbursed by our lending partners, who are registered as Non-Banking Financial Companies or Banks with the Reserve Bank of India.
This article is for informational purposes only and does not constitute financial or legal advice. Always consult with your financial advisor for specific guidance.
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