Benefits of taking a joint Home Loan

Summary: The tax benefit of a joint home loan is just one of the many reasons why you should take a joint loan to buy a home. Find out more benefits in this article.

24 Mar 2023 by Team FinFIRST

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Having a roof over your head and being able to call it your own is certainly a dream come true for many people. But with soaring real estate prices, many can afford the purchase with only a home loan. However, to ease the loan repayment, you should consider taking a joint home loan with your partner for the various benefits that come with it. Some of these are:

· Higher loan amount

If you take a joint Home Loan, the bank or the lending institution will take into account the incomes and creditworthiness of both applicants into consideration. Based on this, they will calculate your repayment capacity, which will most probably be higher than your individual capacities. Thus, you become eligible for a higher loan amount.

· Tax benefits

Many people opt for a joint home loan for this very reason. The joint home loan tax benefit can be availed as a couple under Section 80C of the Income Tax Act, wherein you can claim a tax deduction of up to Rs.1.5 lakhs. Section 24 also allows a tax deduction of up to Rs. 2 lakhs on the interest repayment. Thus, the loan co-applicants or married couples can claim a total deduction of Rs. 3 lakhs under Section 80C and Rs. 4 Lakhs under Section 24. The joint home loan benefits in income tax are one very important reason to go ahead and apply for the same.

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· Low interest rates for women

Women applicants enjoy a lower interest rate on loan repayments as compared to general home loan interest rates. However, to avail of the special rates, women should own the property solely or jointly with their spouse as well as be one of the applicants for the loan. This translates to a lower EMI on their loan for the home overall.

· Easy repayment

Since the liability of the home loan repayment is shared between two individuals, they can pay off the loan much quicker than usual, making it one of the major benefits of joint home loans. This not only shortens their loan tenure but results in significant savings on interest and helps them become free of debt sooner.

· Better loan eligibility

Since the eligibility for a loan depends on several factors, one of them being a high credit score, your chances of getting the joint home loan approved become much higher if your partner enjoys a good credit score. Your capacity to repay the loan in time increases and you enjoy better repayment terms.

To sum it up

Buying a home with your life partner is one of the best feelings in the world. IDFC FIRST Bank is always keen to partner with you in your dream of owning a house with its attractive housing loan products and benefits of joint home loan. Enjoy attractive interest rates, a completely digitised home loan application process, and an end-to-end tailor-made solution with minimal documentation at IDFC FIRST Bank. So, what are you waiting for? Come live in your dream house with IDFC FIRST Bank!

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.