Thinking of taking a Joint Home Loan? Here’s what you must know

Summary: Joint home loan can increase your eligibility for a home loan and help you save tax. Know more on joint home loan documents needed & its tax benefits.

22 Apr 2022 by Team FinFIRST

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A Joint Home Loan can increase your eligibility for a Home Loan and help you save tax

A home loan is a highly useful financial product that enable millions buy their dream house as they do not have the readily available corpus for it. You as a consumer can avail a home loan and pay the lender back in EMIs over a predetermined tenure. However, getting a home loan is difficult if you do not have the required income. Lenders analyse your monthly income and expenses to learn whether you can pay your home loan EMIs.

There’s a way out, though. If you do not have sufficient monthly income for a home loan, you can apply for a Joint home loan.

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What is a Joint Home Loan?

A Joint home loan is a mortgage taken jointly and repaid with equal financial obligation by multiple people. Family members can be co-applicants for a joint house loan.

If you want to get a greater loan amount, you can take a Joint Home Loan. Your prospects of getting a loan are better than applying for one alone. Income tax breaks are another benefit of applying for a combined house loan, and the tax savings are significantly better than with a single-name loan.

Joint Home Loan eligibility and documents needed

Verification is the most time-consuming and exhausting aspect of getting a loan. It is, however, an important for any lender's operations because they want to ensure that their borrower fits their home loan eligibility criteria and provides supporting papers.

There are a variety of regulatory criteria to know your customer (KYC) and property-related paperwork. It is critical to disclose all evidence to avoid unwarranted rejections and delays in funds availability.

Typically, an application for a home loan must give the following information:

Income proof documents include but are not limited to salary slips, Form 16 issued by your employer, or income tax returns (particularly for self-employed) from the previous two years.
Documents about real estate, such as a purchase agreement, a sale deed, or a register
The previous sale deed, if the property is old
A no-objection certificate (NOC) from appropriate authorities or your bank if a project is sponsored by any financer when buying a new property. When you co-own a property, all applicants must produce their KYC documents.
Some states charge a lesser amount for property registration when you take up a home loan with your wife. Even if you take a joint loan with a non-working wife, you could still benefit from a lower housing loan interest rate.
You must pay the EMI for a combined loan from a joint account maintained by both co-applicants. It helps in keeping track of contributions and facilitates reimbursement.
When a husband and wife jointly own a home, inheritance and other legal concerns are minimised.

Tax benefits of a Joint Home Loan

One of the benefits of availing a home loan is that it helps you save money on taxes. It can result in a significant reduction in the total cost of the loan. The home loan customers are eligible for tax rebates under Section 80C and Section 24 of the Income Tax Act. To get tax benefits, the co-applicant must also be the co-owner of the property and be specified in the loan application. In a joint loan, tax benefits are distributed amongst the co-applicants based on their individual proportions of the property ownership.

If you want to apply for a home loan, you need not look further than IDFC FIRST Bank.

With IDFC FIRST Bank Mobile banking app, you can avail a home loan online. All you need to do is create an account on the app and provide some requisite inputs. With that done and necessary information verified, you should get the loan approved quicker than you usually expect!

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.