Save Big with a Joint Home Loan: Benefits of Applying with Your Wife
Many people take home loans to buy a house, and applying for the loan jointly with your wife can save you a lot of money. One major advantage is that you can save up to ₹7 lakh in taxes, along with other benefits. Here’s why a joint home loan with your wife could be a smart choice:
1. Better Chances of Loan Approval
If you face challenges like a low credit score, insufficient income, or high debt, a joint home loan can help. Adding your wife as a co-applicant improves your chances of getting approved, especially if she has a strong repayment history.
2. Lower Interest Rates
Joint loans with a female co-applicant often come with slightly lower interest rates—usually 0.05% less than the standard rate. This small reduction can significantly lower your EMIs over time. To qualify, your wife must be a co-owner or sole owner of the property.
3. Higher Loan Amount
When applying alone, the loan amount depends only on your income. With a joint loan, both incomes are considered, allowing you to qualify for a larger loan. However, the combined debt-to-income ratio of both applicants should not exceed 50-60%.
4. Tax Benefits
A joint home loan offers double the tax advantages if both applicants are co-owners of the property:
- Each of you can claim up to ₹1.5 lakh on the principal under Section 80C, totaling ₹3 lakh.
- Each of you can claim up to ₹2 lakh on interest under Section 24, totaling ₹4 lakh.
In total, you can save up to ₹7 lakh in taxes.
5. Shared Responsibility and Credit Score Boost
Both partners share the responsibility for repaying the loan, reducing the financial burden on one person. Timely EMI payments help improve the credit scores of both applicants. This teamwork also ensures that household finances stay on track.
By taking a joint home loan with your wife, you not only save money but also share the financial responsibility, making homeownership more manageable and beneficial for both partners.
