Can Two People Take Home Loan For the Same Property?

What Is Joint Home Loan Eligibility Criteria?

To take a joint home loan, the borrowers must fulfill the following eligibility criteria. 

• Joint home loan eligibility is determined by the relationship between the co-applicants

• It is possible to apply for or obtain a joint home loan with your spouse, siblings, or parents as co-applicants

• Each co-applicant must have a source of income, either through a salary or self-employment

• There can be a maximum of six applicants per joint loan

• The term of the loan is restricted to the age of retirement of the oldest applicant

What Are The Documents Required For A Joint Home Loan?

To avail a joint home loan, you the applicants must submit the following documents to the lender. 

• KYC Documents

• Proof Of Identity

• Proof of Address proof

• Bank statements or salary slips for proof of Income

• Documents stating the co-ownership of the property(if necessary)

• Valid property documents

What Are The Benefits Of A Joint Home Loan?

Having a co-borrower can be beneficial when taking out home loans because they can lessen the burden. Families with two or more wage earners can choose a joint home loan with ease as it offers a number of benefits. 

Here are a few advantages that co-applicants provide when taking a joint home loan.

Easy Repayment

One of the main advantages of joint home loans is that the two borrowers can pay off the loan much faster than they would have otherwise because the responsibility for repayment is shared. This helps them become debt-free sooner and save a significant sum of money on interest in addition to reducing the length of their loan.

Better Loan Eligibility

Your co-aplicant's good credit score increases your chances of getting the joint home loan approved because loan eligibility is dependent on a number of factors, one of which is the credit score. You get better terms for repayment and are better able to return the loan on time.

Higher Loan Amount

The bank or lending organization will evaluate the creditworthiness and incomes of both applicants if you apply for a joint home loan. They will then compute your repayment capacity, which is likely to exceed each of your individual capacities. As a result, you qualify for a larger loan amount.

Tax Benefits

Each co-borrower can now take advantage of the various tax deductions, such as those provided by Sections 24 and 80C of the Income Tax Act of 1961, on an individual basis when they have a joint home loan.

When it comes to the home loan, each co-owner who is also a co-applicant is eligible to deduct up to Rs. 2,00,000 from their income tax return for interest. The owners receive the whole amount of interest paid on the loan according to their ownership stake.

Lower Interest Rates For Women

For female clients, certain lenders provide a customized interest rate on house loans. These interest rates are typically a few points less than the standard rates. A woman must be the only or joint owner of the property, as well as an applicant or co-applicant for a home loan, in order to qualify for the reduced interest rate.

A home loan taken out jointly can significantly help a family's savings without straining their financial resources. If you intend to become a co-applicant or co-signor on a home loan, consider this carefully because it entails significant responsibility. When you co-sign a home loan agreement, you are making a major financial commitment. If something goes wrong, or if the primary home loan applicant fails to repay the loan, you will be legally obligated to repay it.