When people talk about a joint home loan, one often assumes that it is a married couple who is applying for it. However, other relations such as siblings, friends or non-married couples may also enter into buying a home jointly.
With the positive side of opting for a home loan jointly and all that goes into buying one’s own house, aspects like joint home loan eligibility, any tax benefits on joint home loan, the home loan documents and home loan EMI need to be understood and well planned.
Following are the factors one needs to keep in mind while owning a home jointly:
1) The Right Time
Home loans are stepping stones to one’s dream home. Availing the right home loan for one’s house can be less daunting if they are aware of the best home loan interest rate. With interest rates now having dropped to 8.35%, it is just the right time to apply for a home loan and turn your dream of owning a home into a reality.
Both the owners at first must discuss and list down the requirements regarding their home. The size of the house, expenses involved and various elements are to be discussed and finalised upon. Plan a rough layout of the requirements to have a clear view of the wants.
A process is to be followed while owning a home jointly. Required home loan documents, legal papers are to be submitted in order to own a home. Have a thorough understanding of the criteria and keep all the needed documents handy for an easy process. Know the Home Loan Document Checklist to be completely sure.
4) Detailed Analysis
At the time of applying for a home loan, analysis from the applicant’s side about features like home loan EMI (Equated Monthly Instalment) and receiving tax benefits on joint home loan need to be done in order to reduce the home loan pay out. It’s recommended to cross verify all the details before making a move.
5) Home ownership ratio
While buying a home jointly, it is beneficial to decide the house ownership ratio in advance. It is advised that the one with the high income should have a higher share in the ownership. This will enable the person to enjoy tax benefits on joint home loans. Also read – Benefits of Joint Home Loan
One doesn’t buy a house every now and then, so be wise, keep the above factors in mind, and plan accordingly!