Joint home loan offers you various benefits. A joint home loan adds a co-applicant or co-borrower in your home loan application to bank. Co-applicant or co-borrower is your partner with whom you apply for loan. It can either be your spouse, parents or siblings. There are 7 things which you must know about joint home loan application.
- Grasp higher loan amount: You will end up getting higher loan amount as having a co-borrower increases your chances of getting a higher loan amount due to more capacity of borrowers to repay the loan.
- Joint home loan tax benefits: People quite often uses home loan to save tax and getting a joint home loan is an exemption to it. The amount of tax benefit that can be availed by it depends upon the proportion of contribution, subjected to the limits specified.
- Documents needed: Although, the documents required are same as that for normal loan but the only difference is that, documents from both sides are requires. Generally, documents required are identity proof, address proof, bank statement and salary slips.
- Co-applicant and co-owner: Mostly, all home loan companies insist that co-owners should be co-applicants but the inverse of this is not must. Co-applicants share the repaying part of the loan whereas co-owners own the house whether being co-applicants or not.
- Loan eligibility: Home loan eligibility amount increase with joint home loan plan as repayment capacity increases. The amount increased depends upon the salary of co-applicant and also the company in which they are working in. It’s better to compare multiple offers before choosing one.
- Repayment of loan: Repayment of loan can be done by both parties. Either one of them can repay the loan amount or both can go for a joint account from where automatic transaction of loan takes place.
- Timely payment of EMIs: EMIs should be paid as scheduled. If one of the applicants fail to contribute towards payment, other applicant thus becomes liable for payment. In case of delayed EMI, legal actions can be taken.