{"id":535,"date":"2021-03-14T06:54:48","date_gmt":"2021-03-14T06:54:48","guid":{"rendered":"https:\/\/www.loanfasttrack.com\/blog\/?p=535"},"modified":"2022-08-03T10:06:55","modified_gmt":"2022-08-03T10:06:55","slug":"benefits-of-applying-joint-home-loans","status":"publish","type":"post","link":"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/benefits-of-applying-joint-home-loans\/","title":{"rendered":"4 Important Benefits Of Applying Joint Home Loans"},"content":{"rendered":"\n

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\"Applying<\/figure>\n\n\n\n

Owning a dream house of your own is an aspiring desire of all.\nBut at the same time craving for a bigger house is what every individual is\npining for. For many it is an investment of their life long hard earned money\nand hence they move heaven and earth to make their dream come true. Since\npurchasing an immovable tangible asset like a home is a huge financial decision\nthat requires adequate funds, owning it with self-owned funds is a rare\nscenario. Home loan thus paves the way making the purchase affordable for an\nindividual. Additionally, applying with a joint housing loan<\/strong><\/a> with an immediate\nfamily member can also improve the affordability of the borrower. <\/p>\n\n\n\n

What Do You Mean By Joint\nHome Loan?<\/strong><\/h2>\n\n\n\n

A home loan<\/strong><\/a> which is jointly\napplied in the name of the applicant and his immediate family member\/members\n(spouse, parents, children & siblings) is referred to as a joint home loan.\nThe primary applicant is the borrower while the immediate family members will\nbe the co-borrowers & co-applicant to the loan. As many as 6 members can be\nthe joint applicants to the loan.<\/p>\n\n\n\n

Who Can Be A\nCo-Applicant In Home Loan?<\/strong><\/h2>\n\n\n\n

Joint ownership for the property can be shared between spouse,\nparents, siblings, friends, relatives, business partners, etc. But to apply for\na joint home loan the co-owners have to be in the blood relation with the loan\nborrower\/applicant to become the co-applicant in the home loan. For the\nbusiness partners applying for joint home loan, the company must be the\nmandatory co-applicant to the home loan application. Click to know in detail who can be a home loan co-applicant<\/strong><\/a>. <\/p>\n\n\n\n

To apply for a joint home loan all co-owners of the property\nmust be the joint co-applicants to the loan, irrespective of their independent\nincome whether considered or not for computing the loan eligibility. A home\nloan co-applicant can be salaried, NRI, self-employed or self-employed\nprofessional. Many banks insist on having a co-applicant to the loan even if\nthe income of the co-applicant is not considered for taking a housing loan<\/strong><\/a>. Under such\ncircumstances where the income of the co-applicant is not considered the\nborrower can add a nonworking co-applicant to the joint home loan application.<\/p>\n\n\n\n

Given below is the list of the immediate family members who can\napply as co-applicant  with applicant\/\nborrower for a joint home loan. <\/p>\n\n\n\n

1) Spouse<\/strong> – Working\nor nonworking spouse i.e. husband or\nwife<\/strong>.<\/p>\n\n\n\n

Applying for a loan with a working or nonworking wife can still\nyield a discount on the interest rates for the borrower. <\/p>\n\n\n\n

2) Parents<\/strong> – Working\nor nonworking parents i.e. father or\nmother<\/strong>.<\/p>\n\n\n\n

By the virtue of the parents being a joint owner of the\nproperty, it is assumed that the property heirship legally belongs to all of\ntheir children. The Banks at times therefore ask the borrower to obtain a NOC\ni.e. no objection certificate from his siblings. Hence adding a parent\nco-applicant is more beneficial for the borrower who is their single child\nleaving no room for property succession. Moreover the tenure of the loan with\nparents as a co-applicant will also be restricted to their retirement age which\nis 60years for salaried and 65years for self-employed.<\/p>\n\n\n\n

3) Siblings<\/strong> – Working\nor nonworking siblings i.e. sister or\nbrother<\/strong>.<\/p>\n\n\n\n

Joint application for home loan can be applied with bank by\nbrother & brother and unmarried sister & sister. Considering brother\nand sister income is a rare scenario. Majority of the private banks do not\nentertain such loan applications of the duo. There are only a few HFCS and public\nsector banks who approve of this, HDFC Ltd.<\/strong><\/a> & Canara Bank<\/strong><\/a> are one to mention.\nAdditionally the banks also preconditions the home loan with the duo purchasing\na home that is either 2 bhk or more to avoid the risk of NPA due the succession\nof the property. <\/p>\n\n\n\n

Why Apply For Joint\nLoan For Housing Loan?<\/strong><\/h2>\n\n\n\n

While it is an accomplishment to purchase your dream house, the\ntriumph is often apprehensive about the liquidity to procure the home i.e.\nfinding the low cost housing loan, its repayments and the home loan eligibility<\/strong><\/a>. On tenterhooks, since\nthe loan eligibility is dependent on the borrower’s income, profile, CIBIL<\/strong><\/a> & employment; additionally on loan\ntenure & interest rate of the lender Banks\/NBFCs\/HFCs, applying for a\ncombined home loan will not only enhance the eligibility but will also help in\neasy loan repayments owing to shared debt-burden.  <\/p>\n\n\n\n

Since for the balanced financial life it is important that the\nhome loan does not turn out to be expensive over the duration of the loan,\njoint home loans are of significant importance because of the following joint\nhome loan benefits.<\/p>\n\n\n\n

Benefits Of Joint Loan\nFor House<\/strong><\/h2>\n\n\n\n

1) Higher Loan\nEligibility<\/strong><\/p>\n\n\n\n

By adding an earning member to the loan application will help to\nenhance the loan amount of the borrower. The combined income of all\napplicants\/co-applicants if considered will make the borrower eligible for a\nhigher quantum of the loan amount. Thus, with joint home loan\neligibility<\/strong><\/a>, a borrower can afford a bigger size of the\nhouse because affordability is the main factor that determines the size of the\nhouse. Alternatively with higher eligibility the borrower can also prioritize\nhis geographical location of the house making him affordable to purchase the\none. <\/p>\n\n\n\n

However, the home loan eligibility for joint applicants is\ndependent not only on the income of all applicants\/co-applicants but also on\ntheir age (Maximum up-to 60 years), profile (Salaried, NRI or\nSelf-employed\/Professional), obligation (Outstanding balances of the other\nloans taken if any), employment details (Designation, work experiences,\nbusiness vintage,etc.) & the CIBIL scores. (Learn how to apply for a home loan with bad CIBIL scores\nwith <\/strong><\/a>Loanfasttrack<\/strong><\/a>)<\/p>\n\n\n\n

2) Easy Loan Repayments\nWith Shared Debt Burden <\/strong><\/p>\n\n\n\n

Taking a joint home loan can help in easy servicing of the loan\nfor the borrower. Since the responsibility to repay falls on both\nborrower\/co-borrower who are the applicant & co-applicant to the loan, the\nrepayment burden gets shared and hence the borrower feels less burdened. The\nloan repayment instalments i.e. the EMIs<\/strong><\/a> are generally served through the bank\naccount of the primary applicant or through the joint account of the applicant\n& the co-applicants by the way of standing instruction given to the bank\ni.e. auto debit\/ ECS (Electronic Clearing System).  <\/p>\n\n\n\n

Difficulty in paying existing EMIs? Find the astute ways\nhow to manage the multiple loan repayments with <\/strong><\/a>Loanfasttrack<\/strong><\/a>.<\/strong><\/a><\/strong><\/p>\n\n\n\n

3) Joint Home Loan Tax\nBenefits<\/strong><\/p>\n\n\n\n

The joint home also provides the tax benefits on home loan for\njoint owners of the property. Both applicant and co-applicants can claim the\nhousing loan tax rebate for principal repayment of housing loan under 80C and\nfor housing loan interest under section 24b of the Income Tax Act,1961 based on\nthe ratio of  their ownership.<\/p>\n\n\n\n