2 major benefits you stand to enjoy on opting for a joint home loan.

Sky-rocketing property prices have put the cost of homeownership beyond the reach for many, so much to that buying a home solely on savings is next to impossible for most of us. This is where a home loan can come to your recue.

A home loan provides you a majority of the funds required to buy a home leaving you only a fraction of the cost to cover out of your own pockets. These loans also provide you long tenures to repay the borrowed amount and also help you to save a considerable amount in taxes.

But did you know, a home loan can be taken in your single name or with a co-applicant, such as your spouse. In fact, when you opt for a joint home loans, you stand to enjoy the following benefits:.

1. Better Eligibility:

When you apply individually, the loan amount you receive is decided based on your income and financial capabilities. However, if you apply for a Joint Home Loan, the loan amount you received is decided on the combined income and financial capabilities. This means you can avail large loan amounts when you apply with a co-applicant. High loan amounts help you choose better homes and ensure the home you buy isn’t restricted by small loan amounts.

2. More tax savings:

When you apply for a home loan individually, you are entitled to receive tax benefits under two sections. The first is section 80C of the Indian Income Tax Act, which allows you to claim up to Rs. 1, 50,000 annually against the principal amount repayment. The second is under section 24 wherein you can claim up to Rs. 2, 00,000 annually against the interest amount paid in the year.

However, if you opt for a co-applicant, these joint home loan tax benefits can be claimed by both you and your co-applicant thereby doubling the amount of taxes that can be saved. So, instead of Rs. 3, 50,000 you can tax up to Rs. 7, 00,000 annually with a co-applicant.

So if you are thinking of a home loan, don’t forget to consider a joint home loan as an option! It will give you access to larger loan amounts and help you save loads of money in taxes! All the best and good luck!

Do consult a financial expert or talk to one of the joint home loan providers to get a better picture of how such a plan can help you with your financial goals.