How To Apply For A Joint Home Loan?

In the course of searching for the ideal home, over 70% of purchasers ultimately settle on a home that is 20% more expensive than their original budget. In situations where the bank does not lend you money due to eligibility criteria, submitting a joint house loan application improves your chances of receiving a larger loan amount. Check out the article to learn more about Joint Home loans, their benefits and the Eligibility criteria to apply for joint home loans. 

What is Joint Home Loan?

House purchase is a one-time financial investment for many which require a lot more planning and research. 

Many prefer home loans from financial institutions for this but most of the time your profile could not fit into the eligibility to take a home loan in such scenarios you can choose an alternative option of a Joint Home Loan.

Joint Home loans maximise home loan eligibility, which must be returned with equivalent financial responsibility. 

Co-applicants for the joint house loan include immediate family members. 

Who Can Be Co-applicant for Joint Home Loan?

A direct member of your family may apply or borrow money with you. 

The joint applicant should be salaried or self-employed to be qualified for a joint home loan.

NRIs may also apply as co-applicants.

Here is a list of Co-applicants,

• Spouse 
• Siblings
• Parents
• Son
• Unmarried daughter

What is a Joint Home Loan Tax Benefit?

The tax advantages for joint home loans are distributed among the co-borrowers. 

It implies that tax deductions may be split, particularly if the yearly mortgage payment is split. And all of that with just one item, a home loan.

• The percentage of ownership in the loan determines the tax deduction percentage.
• The highest tax refund that each candidate may receive through the home loan is Rs. 1.50 lakhs for each person and Rs. 2 lakhs for principal repayment.
• The requirement that the loan is executed in the accounts of two people is the most important requirement for tax-exempt and joint housing loans.
• Naturally, the papers for the co-applicant must properly identify each person’s percentage ownership interest in the joint loan.

Joint Home Loan Eligibility Criteria

The requirements for a joint house loan vary depending on the lender, just like the interest rate & processing fee do.

Here are Joint Home Loan eligibility criteria listed as follows, 

• Both applicants must be Indian Citizens
• For salaried applicants, the age must fall between 22 to 62 years old, or between 28 & 70 years old (for self-employed).
• Candidates for salaried positions must have a least three years of work experience, whilst candidates for self-employment need to have five years of experience.
• The applicant’s CIBIL scores must be greater than 750.

Which Documents Are Required for Joint Home Loan?

The following documents are required for Joint Home Loan applicants,

• Passport
• Aadhar Card 
• Driving Licence
• Employee ID Card
• Past two-month salary slip
• Last Three month Bank account statement

What Are The Advantages Of Applying For a Joint Home Loan With a Wife?

You can avail following advantages of applying for a Joint home loan with your wife. 

Discounts and Accessibility at Affordable Cost

The cost of real estate is typically higher in India’s major cities. So it would be logical to request a loan jointly. 

The husband and wife’s combined incomes increase the joint house loan eligibility.

The weight of both principal and interest payments is lessened, but there is also a simultaneous consideration of the pressure to return the loan. F

Finally, because the husband & wife jointly pledged the offered security, granting the loan was made easier.

For female applicants, several banks & Private Lending Institutions provide a significantly reduced interest rate. 

For a spouse whose repayment amount is likely to be substantial, this discount shows to be of great value. 

The amount of equivalent monthly instalments (EMIs) that must be repaid decreases at a low rate.

The usual discount on house loans given to women is around 0.05%. When requesting a shared home loan, be sure to inquire with your lender about this benefit.

You can calculate EMI using a home loan EMI calculator.

Lower Stamp Duty Rate

One of the advantages of opting for a Joint Loan with a wife is lower stamp duty rates.

For female buyers of real estate, the government provides cheaper stamp duty charges. 

Many states have lowered rates for women compared to men in an effort to support women’s empowerment. 

States with lower stamp duty charges include Delhi, Uttar Pradesh, Haryana, and others. Both men & women are offered a standard rate in Maharashtra.

Tax Benefits

The couple is entitled to receive a tax exemption of up to INR 1.50 L on the principal amount under Section 80 C of the Indian Income Tax Act. 

The Income Tax Act’s Section 24 allows borrowers to deduct up to INR 2 L from their taxable income for interest paid on home loans. 

As individual taxpayers, you can claim the joint house loan tax benefit. They can each claim INR 3 lac per Section 80 C & INR 4 lac under Section 24 as a couple. 

Succession Advantage

It takes a long time and is laborious to transfer properties to the next of kin through the succession procedure for a seamless transfer of property in the event that the property owner passes away. 

Married couples should jointly own the property, if possible. Since there is no question of succession, the property automatically belongs to the survivor.

Can You Apply For a Joint Home Loan With Non- Working Wife?

You can apply for a joint home loan with a non-working wife which will benefit you in availing tax exemptions.

Due to this many finance institutions insist on joint home loans than applying individually.  

If the wife is non-working or a housewife there won’t be any effects on a borrower’s eligibility for a home loan. 

Declaration Format For Joint Home Loan Application

Here is the declaration format for a Joint home loan application.

FAQs