Joint Home Loan with wife Benefits: Nowadays most people take home loan to buy a house. If you take this loan together with your wife, you can save a lot of money. The first benefit is that you can save tax up to Rs 7 lakh, along with this you can also avail many other benefits. Know the benefits of taking a joint home loan with wife.
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Loan is easily available
Many times people face difficulty in getting a loan due to poor credit score, low income or imbalance in the ratio of other types of debt and income. In such a situation, a joint home loan is helpful. By adding another person as an applicant, the eligibility for getting a loan increases. If the other person involved in the joint loan has a good repayment capacity, then the loan is easily available. However, this rule applies to any kind of joint loan, whether the joint home loan is taken with a female applicant or a male applicant.
Cheap Home Loan
If you make your wife a co-applicant for a joint home loan, you will get a slightly cheaper loan. If the loan is cheaper, it will also affect your EMI. Usually, lenders offer a different interest rate for home loans for any female co-applicant. This rate is approximately 0.05 percent (5 basis points) lower than the standard rate. However, to avail this benefit, the woman should be the owner of the property either alone or jointly.
loan limit will increase
A single loan applicant is given a loan according to his income. But in a joint loan, the total income of both is considered. In such a case, the limit of the loan amount increases. But keep in mind that the ratio of debt and income of you and your co-applicant should not be more than 50 to 60 percent.
This way you can save tax up to Rs 7 lakh
The biggest benefit of taking a joint home loan with your wife is in income tax. On applying for a joint home loan, both the borrowers can avail different income tax benefits. But this benefit will be available only when both the applicants are also the owners of the property. On taking a joint home loan with your wife, you will get double the tax benefit. On the principal amount, both of you can claim Rs 1.5 lakh each, i.e. a total of Rs 3 lakh under 80C. On the other hand, both of you can get a tax benefit of Rs 2 lakh each on the interest under section 24. In this way, you can get a total tax benefit of up to Rs 7 lakh. However, this will also depend on how much your home loan is.
Effect on credit score
If you take a joint home loan, both the husband and wife will be equally responsible. In such a situation, if the EMI is paid on time, it helps in improving the credit score of both. Apart from this, when both the partners pay the EMI together, the entire burden does not fall on one person. This also does not spoil the household budget.
