Buying a home requires efficient planning and restructuring of your finances but is a rewarding milestone to reach. Since it can be a substantial investment, you may be looking to avail a home loan.
There are multiple benefits of using credit to buy a home. It not only helps you split the cost across your preferred timeline but also offers you tax benefits. However, home loans also entail paying interest, which can add up to quite a hefty sum.
This can be a significant financial commitment that can be challenging to manage alone. A joint home loan with a co-applicant can ease your repayment burden. What’s more, it can help you get a high home loan amount more affordable.
To understand the dynamics of a Joint Home Loan along with its benefits, read on.
Who is eligible to apply for a home loan jointly?
A home loan can be taken jointly by spouses or family members. In such cases, the co-applicants are responsible for repaying the loan and are liable for the debt together. Usually, 2 to 6 people[EW1] can be co-applicants, but this may also depend on the lender you choose.
The creditworthiness of all co-applicants is considered by the lender when approving the loan and determining the terms. A home loan co-applicant must be a close relative, such as your spouse, sibling, son, unmarried daughter, or parent.
Here’s more information about who is eligible to apply for a home loan jointly.
1 – Married Couple or Spouses: A husband and wife are eligible to apply for a home loan even if they do not co-own a property. This is applicable whether the wife is an earning member of the family or not.
However, if the wife is a co-owner, she will need to be a co-applicant. If the wife is working, her income and credit score will also be assessed for home loan eligibility.
2 – Father & Son/s: A father and two or more sons can be co-applicants for a joint home loan. However, the father in this case cannot be the main owner of the property but may be a co-owner or not an owner at all. Here, the father’s income may also be considered to assess the home loan eligibility.
If a father and his only son are applying for a joint home loan, the father needs to be a co-owner. In this case, the father’s income is also considered.
3 – Mother & Son: When the mother is a co-owner of the property, whether or not she is a working professional, the son and mother are eligible to apply for a home loan jointly.
4 – Mother/Father & Unmarried Daughter: A mother or father can be a co-applicant for a home loan with an unmarried daughter. However, the daughter should own the property to prevent legal hassles. In this case, the mother or father’s income is not considered.
5 – Siblings: Two brothers are eligible to apply for a home loan only if they co-own the same property or if they are sharing the home and staying in it together.
However, two sisters cannot apply for a home loan, and neither can a brother and sister. Two sisters also cannot be co-applicants.
How is a Joint Home Loan Beneficial?
There are numerous benefits of a joint home loan such as:
- Increased chances of getting approval due to shared repayment responsibility
- Increase home loan amount in cases where more than one co-applicant’s income is considered
- Home loan tax deductions can be enjoyed by all co-applicants who are also co-owners
As you can see, applying for a joint home loan can be a great way to save more when purchasing a home. This is particularly true when applying with a women co-applicant as lenders offer incentives such as reduced interest rates to women.
Before you proceed with a joint home loan, compare offers from different lenders. Making an informed decision in selecting the right lender can help you repay with ease. One way to do this is by relying on the Bajaj Markets App.
Here you can view top lenders for joint home loans and compare their features. You can also view other financial and lifestyle products on this all-in-one digital marketplace. Download it for both Android devices and iPhones and get started on your journey as a homeowner.