5 Ways A Joint Home Loan Helps You Buy Your Dream Home


Sometimes even after putting in your savings and taking a Home Loan, you may have to compromise on the home you buy. In this case, if you share your Housing Loan, buying your dream home can become a reality. Offered by many financial institutions, a joint Home Loan can be the ideal solution for your financial health, so that you don’t have to compromise on your idea of the perfect home.

Joint Home loan

You can apply for a joint Home Loan with your spouse, parents or siblings. There can be as many as six co-applicants. Such a loan allows you to club your incomes together to raise a loan of a higher value. With a better loan, you can opt for a bigger house at the location of your choice. That’s not all, right from increasing your chances of getting better loans to getting Joint Home Loan tax benefits, there are several reasons how this could benefit you.

Joint Home loan
Joint Home loan

1. Improves Your Chances Of Getting a Loan

A bank or financial institution might disapprove your Home Loan if your income doesn’t match their requirement. However, the combined income of co-applicants enhances your joint Home Loan application and increases your chance of getting the loan.

2. Increases Your Eligibility For a Higher loan

Pooling your incomes together for the loan allows you to apply for a higher loan amount too. You can buy a bigger home with a higher loan. The higher the loan, the better are your chances of affording a home in the fancier areas of the city too.

3. Gives You Better Tax Benefits

According to Bajaj Finserv, one of the biggest advantages of a joint Housing Loan is that you can avail higher Home Loan tax benefit. The Income Tax Act allows all co-applicants to claim tax deductions on both the principal repayment as well as on the interest repayment.

Principal repayments are eligible for tax deductions up to Rs.1.5 lakh under Section 80C. Additionally, interest repayments are also eligible for tax deductions up to Rs.2 lakh under Section 24(b). If the joint Home Loan is shared by two people equally, they can claim tax benefits separately. With such an arrangement, the total benefits of a joint Home Loan turn out to be much higher than taking an individual loan.

The Housing loan co-applicant tax benefits don’t end here. If one of the people of the shared loan is a first-time borrower, they can avail additional tax benefits of Rs.50,000 on interest repayment under Section 80EEE too. Thus, most people would agree that joint Home Loan benefits in income tax savings are one of the biggest reasons to opt for it.

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4. Offers Better Interest for Women

Joint Home Loan benefits also extend further when one of the co-applicant is a woman. NBFCs offer lower interest rates if a woman is the primary borrower of a Home Loan. Sometimes, you can even get interested discounts up to 0.5% on your loan. This feature might be particularly helpful for a couple wanting to buy a new house. When they pitch in together for a joint Home Loan, it might turn out to be a better deal for their finances.

5. Allows You to Share Repayment

When you take a Home Loan individually, you might be able to afford only a long-term EMI, which increases the total interest being paid. However, a joint Home Loan is a shared responsibility among all the co-applicants. When there are multiple people responsible for the repayment, the chances of default are much lower. This gives you the option to take a short-term EMI and repay your loan faster, paying much less interest.

If you’re thinking of buying a home, there are plenty of benefits to a joint Home Loan that could help you. So, if you’re wondering whether it makes sense to opt for a Joint Home Loan, the Home Loan tax benefits 2017-2018 alone are good enough to make you consider it.

The rest of the benefits act as bonus features that make the process of buying a new home less stressful.  With NBFCs, you can avail Home Loans up to Rs.3.5 crore. These loans are easy to avail and will save you a lot of time. All you need to do is share your details and check out your pre-approved offer.