Table of Content
A co-applicant aka co-borrower is the partner along with whom you intend to apply for a home loan. The co-applicant can be your parents, spouse, children or siblings. Repayment for a joint housing finance plan can be done either through a joint account of the co-borrowers, or by splitting the EMI equally or proportionally among them.
Ahome loanis usually the first and best option; however, you need a strong financial profile to qualify for it. For those who don’t cut with their profile alone, a viable alternative is opting for a joint home loan. You can check your SBI Home Loan eligibility with the FincityHome Loan Eligibility Calculator. Simply enter basic details such as your income, loan tenure, city and interest rate to find out how much SBI Home Loan you qualify for. SBI Home Loans start at just 6.90% interest per annum and come with numerous benefits.
Easy refinancing benefits
All the applicants in the joint loan share the equal financial responsibility of repaying the loan. People can add their spouses, siblings, children, or parents as co-applicants. You cannot take a joint housing loan with any random person, or even a business partner. Only close relatives – spouse, parents, siblings or children – can be co-borrowers in a housing finance scheme. A joint home loanis a housing loan which is taken by more than one person and repaid with equal financial responsibility.
A joint home loan is a loan that can be availed by two or more people to purchase a house. It is mandatory for the co-applicants to be financially independent so that the debt is equally divided and repaid by each of the two. If the joint applicants of the loan are joint owners of the property, they can also boost several tax exemptions. As soon as you acquire the property, your ownership stake is set in stone.
Apply for Home Loan & Check your CIBIL score absolutely FREE.
However, when it comes to home loan co-applicant declaration, there is a great deal of misunderstanding regarding who may claim the home loan benefit and how much of a tax advantage they can get. Experts say that you are taxed on your portion of the property as an individual in the event of joint ownership of a house. Your part of the jointly owned property is taxed according to Section 26 of the Income Tax Act. It may also happen that you may be a joint owner, as well as a co-borrower but are not servicing the home loan.
In case you are thinking of constructing or buying any property, you could be thinking about opting for a home loan. If you fall under the eligibility criteria of the CLSS scheme, you will be allowed a subsidy while borrowing a loan for the first time. The amount offered through a joint home loan generally depends upon the income level, the income of the co-applicant, value of the property and current liability.
ii. Commitment Fee:
These couples should also be joint owners to avail of additional tax benefits. You may receive interest benefits up to Rs 2lakhs per joint owner with one self-occupied property. Each co-borrower can claim up to Rs 1.50lakhs in tax advantages per year for house loan repayments under Section 80C, along with other qualifying goods.
This is my joint loan home loan and I have taken it along with my brother.The customer service provided by the Bank is not upto the mark as they are very slow in their process. The rate of interest charged is less when compared to others. IIFL housing loan process is very good, rate of interest is 9.25% which is the best. I had just taken this loan before 4 months, Processing fee charged was 35 k it was okay. They had taken around one month to provide this housing loan and it is a joint loan. PNB Housing loan is the best, PNB offered the least interest rate as compared to SBI, processing was very easy they had taken around 2 weeks for the disbursement .
Factors to consider before taking a Home Loan
• According to this section, the first time buyers can claim an additional Rs. 50,000 deduction on payable interest. Repayment of the loan could either be done through a joint account, or both the parties could distribute the EMIs among themselves and then pay off the debt. As of the 2017 budget, the amount of interest claimed as a deduction for rental property is limited to Rs 2lakh.
Enjoy competitive interest rates and reap the benefits of affordable EMIs. Once the documents are reviewed and the Home Loan is approved, the loan amount is disbursed into your SBI account. Fill in your personal, financial, professional and property related details as required and submit the application. Pay higher down payment– Loan-to-value ratio is another factor that determines your eligibility. If you want ensure that you qualify for a Home Loan, make a higher down payment and bring down your LTV ratio. This will lead to a lesser loan amount and increase your chances of getting a Home Loan.
This enhances the savings of the individuals and thereby reducing the heavy burden. As part of the requirements for a combined mortgage, both borrowers must have an income that will allow them to pay the monthly EMIs. If the EMI advantages are paid by one party, it should be explicitly stated in the house loan contract. It should also explain how much of a co-money borrower is being used. The EMI amount payable will have two components, namely interest, and the principal. Purchasing a house is a one-time investment that involves a great deal of planning and funds.
It might be in the form of a donation to the down payment or your portion of the mortgage. A co-borrower in the house loan application may also be a joint owner of a property, even if you have paid for your portion of the property in full with the down payment. Taking a joint loan with a non-working spouse will not benefit you in tax savings and loan amount. The same is the case with taking a joint loan with non-working parents. However, if you take a joint loan with your non-working wife or non-working mother, you might benefit from lower stamp duty and lower interest rates. Fully satisfied with HDFC LTD the level of service provided by them was really good.
Your mortgage will be tax-deductible in proportion to how much you are paying back. In the case of a joint home loan, several tax exemptions can be divided among the co-applicants. On availing a home loan, the applicants will have to pay monthly EMIs, including principal payment and interest rate payment. The ownership ratio is used for determining the proportion of tax deduction for each applicant.
The rate of interest charged was floating, fortunately till date there was no rise in the interest rate. I have bought home loan in HDFC Ltd since i know the people working over there, i have chosen this bank. I applied the loan amount of Rs. 62 lakhs which is a joint home loan and they have sanctioned the same. You can have a maximum of 6 applicants and a minimum of 2 applicants in a joint home loan. However, the number of co-borrowers depends on the bank’s discretion.
So, if your share in the joint property is certain or ascertainable, you cannot be taxed as a Body of Individual or Association of persons . Concluding the above, joint home loans are definitely beneficial as compared to normal home loans. In case you are looking for a home loan and you can speak to your blood relatives to get a joint home loan. If one of you fail to contribute towards the EMI payment, the other will be liable towards payment. In case of delay or default in EMIs, legal action will be taken against the borrower as well as co-borrower. I am very much impressed with the general service provided by PNB for the housing loan.
In addition, they would have to specify the percentage of interest and principal payments that the taxpayer can deduct. In India, tax benefits are offered on two components of the home loan - interest repayment and principal amount. Every co-applicant is eligible for taking these tax benefits.
No comments:
Post a Comment