All About Joint Home Loans |MakeMyMoney

By MakeMyMoney

September 20,2020

All About Joint Home Loans

Loans have made life so easy that people can now see the dream of having their own house come true. When someone decides to own a house, the 1st thing that comes to a person’s concern is finance. It is a considerable investment that requires a vast amount of money, so proper planning and calculation are required before stepping forward. According to research, only 70% of people can own housing in their life, and the other 20% cannot because they cannot around finance. Since home loans have always been the best choice for arranging finance for the house. Banks look in many criteria before granting the home loan, and one of the essential criteria is monthly income. You cannot get a loan more than your monthly income, but in joint home loans, you can get higher home loans.

Joint Home Loan

The housing loan in which more than one person will be responsible for paying back to the bank is called a joint home loan. This can include family members, parents, spouse, children, and siblings who can be co-applicants for the joint home loan, and they will share the equal responsibility of payback to the bank.

People Who can be the co-borrower?

The people you are staying with, an immediate family member can be your co-borrower or co-applicant. The can be NRIs, but these people should be salaried or self-employed. They should have a source of regular income. People who can be co-borrower and co-applicants are spouses, siblings, parents, and children. Mainly a couple comes together to take joint home loans because they want to contribute to financing the house equally.

Advantages Of Joint Home Loan

Increases the budget for a suitable house.
The burden of payment gets shared
Loan eligibility increases
One can get a big loan
Enhance tax benefits
For women, applicants lower interest rates.
Advantages Of Joint Home Loan In India

The co-owners or the co-borrower cab claim tax deductions and avail the tax benefits.
Lower interest for women co-borrowers.
More substantial loan amounts with more members.

Eligibility

The relationship between the co-applicant plays a vital role in getting a joint home loan. More than two people can also be a part of the joint ownership of the house and avail of a joint home loan. A maximum of six members can come together of a family to be the co-borrowers of the home loan. You must ensure to have a co-ownership clause in the agreement of the property to qualify for a joint home loan application. The application many times, gets rejected because of not meeting the eligibility.

Essential documents for joint loan application