Housing loan has been one of the favorite posting topic here . We have written about housing loan here, here and here. Continuing the trend to educate about housing loan, this one goes on how to maximize the benefits from a housing loan by making it a joint housing loan between couples.
The below are the benefits one is bound to get from a joint loan.
• The most significant benefit is increased eligibility. The total income is calculated based on all sources of income of both the applicants. So, if your spouse is working, you are in for more amount.
• It is known that in case of a housing loan, the tax rebate for principal is a maximum of 1 L and a 1.5 L for the interest paid. In case of joint loan, these benefits are given simultaneously to all the parties involved, hence for a couple the benefit doubles! In case they chose to share the repayment of interest and principle, the benefits they receive is directly proportional to the share each contribute towards repayment.
• The good thing is that it need not necessarily be married couples, one can avail joint loan with their parents also.
As is logical the partner with the higher income should contribute more towards the loan to bring his taxable income down so that his tax comes down. For tax purposes, it is best to procure a home sharing agreement, detailing the ownership proportion in a stamp paper, as legal proof for ownership.
However, there is one rule banks insist on when you apply for a joint home loan, which is that all co-owners of the property should also be co-applicants but the reverse need not be true.
So, make partnership and make merry!