As you plan to purchase a residential property completely on your own, it can be a lot of responsibility to handle at once. If you have a co-applicant, the financial burden can be eased out to a certain extent.
Therefore, the double income households are at a privilege when it comes to purchasing a residential property.
However, it is important to know how you enjoy the maximum benefits if you avail a joint home loan.
Benefits of availing a loan with a co-borrower
Having a co-applicant for home loan eases the overall procedure of seeking and repaying the loan. The benefits are listed hereunder –
Make easy repayments
Payment of EMIs becomes easier with a joint home loan as borrowers can split the amount between them, or they can pay through their joint account.
Maximize loan eligibility
The presence of two borrowers increases the affordability of the overall loan. As a result, the eligibility to avail a larger amount also increases since they can repay the whole amount conveniently.
Gain benefits on tax
Both borrowers can apply for tax benefits. They can avail tax benefits in the ratio according to which they have availed the loan amount in the first place. As you avail a joint home loan, you can claim for benefits up to Rs. 7 Lakh, Rs. 3 Lakh per annum on the principal paid and Rs. 4 Lakh per annum on the interest paid. Therefore, the overall burden of both tax and loan amount gets remarkably reduced.
Applying with a co-borrower provides flexibility in acquiring the loan as well as its repayment. Hence, it greatly helps in reducing the financial burden of an individual.
