Marriage is a beautiful relationship between two people that combines them in a bond of sharing life, dreams and happiness. It also means sharing troubles, responsibilities, and burdens. Isn’t it wonderful to not be alone in every decision you make, Especially when it comes to something as life-changing as buying your own house? 70% of people decide to buy a house even though it usually costs 20% more than what they initially imagined.
Husband or wife can apply jointly to get a home loan even if they are not the co-owners of the property. Moreover, the chances of approval increases since the income of both applicants are taken into account. This increases their limit for eligible loan amount. In fact, most of the banks like Karnataka Bank encourage having spouse as joint applicants for a home loan since it is the most preferred co-applicant combination.
Here are few more reasons why an easy home loan is a great choice for buying your dream home.
- Multiple Incomes, One Loan:
To lessen the EMI burden, majority of the applicants for home loans choose to apply for joint home loans. Due to this, burden of entire EMI on a single person is reduced. Hence, repayment of the loan is made much easier if there is a co-borrower. Home loans in which both the applicants contribute to the repayment, the applicants can pay higher EMI instalments and reduce the loan tenure to become debt-free early. For a simplified home loan application procedure, we invite you to explore our page here. We specialize in granting home loan approvals within a mere 8 days.
- Eligibility
Loan is more likely to be sanctioned quickly when both the co-applicants have good credit history and financial stability. This also enhances the limit for eligible amount for the loan. Preferably, the spouse must be a salaried employee or self-employed in order to qualify as a co-applicant. To apply jointly with some of the best bank for home loan like Karnataka Bank, both applicants must be citizens of India and should submit the necessary documents with the KYC documents of both the applicants, Property documents etc. These terms and conditions are subject to the respective Bank’s policies.
- Banks preference for Co-applicants
Co-applicants with financial stability and good credit score are offered competitive interest rates by lenders. This ensures an additional safety parameter for the bank as a co-borrower is equally obligated to repay the home loan.
- Tax Benefits
The applicants can avail tax benefits under Section 80C of the Income Tax Act which permits a couple to obtain a tax deduction of up to Rs 1.5 lakh on the principal amount. Section 24 permits borrowers to deduct tax on interest repayments up to Rs 2 lakh. Because both the applicants can claim the combined house loan tax benefit as separate taxpayers, there is a major advantage here of claiming a total of Rs 3 lakh under Section 80C and Rs 4 lakh under Section 24.
Conclusion
In an unforeseen event of one of the applicants death, the transfer of ownership rights is easy. An insurance policy that covers the home loan liability and any legal agreement with each partner’s liability in the event of a dispute is recommended.
Joint housing loans are appealing because of the numerous benefits they provide. Joint or separate, Karnataka Bank provides easy home loans for all. Get yours now!
