Buying a home involves a lot of pre planning in terms of finances, location etc. At all costs we want to make it as big and as better as possible. The major component involved is affordability, which eventually decides the size, location and quality of one’s home. Given the fact that the option of taking a home loan has improved affordability, there are other factors such as age, income levels, and other loans that you are still repaying that also affect your home loan eligibility.
However, there are ways to improve your home loan eligibility by adding co-applicants with independent sources of income. As per this, the lender will consider their income also while assessing your loan repayment capacity. This in turn increases the home loan amount that you are eligible for. In most cases, the co-applicant is a family member or relative. The co-applicant could be self-employed or salaried. The only difference between a co-applicant and a co-owner is, that a co-owner as to be a co-applicant whereas a co-applicant need not be a co-owner.
Importantly, there are two benefits of taking a joint home loan;
Higher loan eligibility
In case of having a co-applicant, the income and sources of the joint account holder are also considered and therefore the amount eligible for application of a home loan increases. Thus it allows you to go in for a bigger and a better home. In this case the home loan is guaranteed against the finances of two people with a regular source of income.
Tax benefits are higher
In case of a joint home loan, individual tax benefits on home loans can be enjoyed by both the co-applicants. The only criteria here are that they should both be co-owners of the property and both should be individually contributing to the repayment of the house loan. Also read – Tax Benefits on Home Loans You’re Unaware Of
A special rate of interest for women co-applicants
In some cases, there is a differentiated home loan interest rate for women borrowers i.e. usually a few basis points lower than the normal loan rates. Having a woman as a joint account holder allows you to avail that benefit.
In order to avail this loan quickly and smoothly, one must be ready with all the home loan documents that include the KYC, identity proof and address proof among other documents so as required by the concerned lender.
A joint home loan application not only allows you to be able to afford a bigger and a better home, but also in turn ends up bringing down the overall cost of the property. Also, you can repay individually through home loan EMI or through a joint bank account. To apply, click here – Home Loan Application