Purchasing a house is one of the most important steps a couple can take. Since it’s a big decision, it’s best to be prudent about every tiny detail involving the purchase decision. Besides the happiness of co-owning a home with the person you love, a joint home loan also has many financial benefits. Let’s have a look at a few.
1. Enhanced home loan eligibility
A married couple has a higher chance of meeting the criteria for home loan eligibility. In today’s dual-income world, when you pool your economic resources with strong credit scores, stable jobs, repayment capacity, and consistent income, you can boost your chances of approval and the probability of getting a higher home loan amount. Plus, it reduces the burden of EMI payment, reduces the pressure of arranging the down-payment, and expands your options in terms of the houses you are looking at.
2. Increase your tax benefits
If both you and your partner are co-owners, co-borrowers, have a separate source of income, and contribute to the repayment, under Section 80C and Section 24, you can individually claim tax deductions. The extent of deductions is determined based on the proportion of the ownership of the property. The primary condition to enjoy tax benefits is that the co-borrowers also need to be co-owners of the property.
Note: You can claim deductions under 80C only after the construction of the property is complete.
3.Concessional home loan interest rates for women
When you apply for a home loan as a woman or with a female co-applicant, you can avail concessional interest rates of up to 0.05% lower than the standard rates. This means that the EMI payments also reduce, make it easier to repay the loan.
4. Lower stamp duty charges for women
You can lower your stamp duty charges when you register the joint owner of your property as a woman. While stamp duty charges differ from state to state, some states offer 1-2% lower stamp duty fees for a woman. Furthermore, expenses that are directly related to the transfer of the property, like registration fee, stamp duty, etc., are eligible for tax deduction under Section 80C. You have to claim the deduction the same year you incur the expense.
As you can see, having a joint home loan ensures many advantages. But to enjoy the maximum extent of the advantages, you need to secure a loan from a trusted financial institution. With easy documentation, fast loan approvals, top-up plans, attractive interest rates, and flexible eligibility, you can stay ahead of the game and your dream home easily.