It’s referred to as a shared house loan when you take out a mortgage with someone else. People frequently take up a shared mortgage with their spouse or siblings. A combined house loan might be taken if a person is unable to repay the entire loan amount on his own.

Benefits of Joint Home Loan

  • If your partner has an excellent credit score and your combined salary is sufficient to meet the EMIs, you may be able to receive a bigger house loan.
  • Both people can claim an income tax advantage under section 80C if they have a combined house loan. It is necessary for both of them to be co-honors in order for this to happen.
  • Both can benefit from interest savings of Rs 2 lakh and principal savings of Rs 5 lakh.

Disadvantages of Joint Home Loan

  • Your credit score will be affected if your co-applicant is unable to pay the EMI.
  • The joint applicant has a good chance of securing the loan, but this is not a guarantee. The reason for this is that banks are particularly hazardous when it comes to house loans.

Keep these suggestions in mind

  • Your application may be refused if your co-applicant does not have a decent credit score.
  • Lenders will only approve a Joint Home Loan if both the principal and co-applicants have a strong repayment history.
  • Often, the lender will not reject your application outright, but will instead offer you a loan with a higher interest rate. You and the co-applicant should not have a debt-to-income ratio of more than 50-60%.

Co-applicant who is a woman

  • Many lenders keep the interest rate on house loans for female borrowers low.
  • This rate is approximately 5% (5 basis points) lower than the standard home loan rate.
  • If a woman is a co-applicant on a home loan, the benefit of a lower interest rate is only accessible if the woman is the joint home loan’s first applicant. Alternatively, the woman should be the sole or joint owner of the property.
The Shining Media

The Shining Media is an independent news website and channel, covering updates from the world of Politics, Entertainment, Sports, International, National, and a lot more.

By The Shining Media

The Shining Media is an independent news website and channel, covering updates from the world of Politics, Entertainment, Sports, International, National, and a lot more.

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