With more than 65% India’s population falling under 35 years of age, India is a young country. It is a country where the young dare and chase their dreams to make them real. One of these dreams is to own a home. Home loans is one such way to realise their dreams.
Over the years this young population is preferring owning a home rather than opting for rent. The mindset now is to own a home. However, there are certain limitations to this mindset, primarily of funding. The young due to their lifestyle do not have enough savings to own a house on an immediate basis.
Income levels of individuals might not be enough to purchase the property, but combine two incomes, they can be eligible for a joint home loan. In most of the cases where two-incomes combine, it is usually of both husband and wife. When both the spouses apply for a joint home loan, they become co-borrowers. The responsibility of repaying the loan comes on both.
There are advantages of owning a joint home loan with your spouse.
If the wife is also the joint owner of the property, there will be a relief on stamp duty and registration charges in several states in India. This also helps in getting a good interest rate on the loans (This is the case only in certain financial institutions). This also helps in enhancing your tax relief which comes with it. States like Delhi offer 1% relief on stamp duty for married couples who jointly own the home. What you need to remember is that in order to get the 1% relief on stamp duty the home should be purchased in the name of the wife.
Longer loan tenure: Because the age of both the individuals is between 25 and 35, this gives them enough time to have a longer loan tenure. The longer loan tenure gives them the option of having a low interest rate on their EMIs, which further aids in rationing their monthly income. It helps them manage their monthly expenses better.
In order to claim the tax benefits, a certificate is issued by the lending institution which shows the split between the principal and the interest.
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