Indeed, buying a house is a once-in-a-lifetime investment for most people. So it is natural for anyone to want to buy a house that is as big and comfortable as practically possible. However, if you are someone trying to get a home loan sanctioned, but your eligibility is not taking you any closer to your dream house, consider getting a family member onboard for the loan.
Joint liability denotes the obligation of two or more people who have agreed to repay a debt or satisfy any other liability together. It spreads the burden of the debt between the parties and also reduces the risks associated with the said responsibility. A person who is subjected to a joint liability is referred to as ‘jointly liable.’
The most common examples of joint liabilities are people applying for a loan together. It could either be family members applying for some credit such as a car or home loans or business partners seeking loans to invest in their business.
Applying for home loans together with a spouse or any other immediate family member is nothing new. It not only helps them get bigger loans to afford a better house, but it also helps them share the financial burden. However, applying for a joint home loan is not simply limited to buying a bigger house, it has various other financial benefits too. Some of the key features of jointly applying for a loan are:
A person can apply for a home loan with either their spouse or any other immediate family person. Other than one, the other co-applicants can be non-residential Indians as well. The co-applicant can be a salaried or self-employed person.
There is a difference between co-owners and co-applicants. Co-owners are joint owners of a property and hold equity in the same. Whereas co-applicants just need to be part owners of the property for the property.
All co-owners must be co-applicants, but all co-applicants need not be co-owners.
Applying for a joint home loan can help the co-applicants save on taxes. Every co-applicant is eligible to deduct the interest amount from their income separately which helps them save taxes on the money paid as interest.
Some lenders offer a lower interest rate for women co-owners seeking to raise a home loan. The rates offered to them are lower than the general interest rates on the home loan.
