Pros and Cons of Co-applicant in home loan

by Finway FSC Empowering People Financially

With the real estate price soaring high, home loans have become indispensable. If you are looking to buy a property, it is supremely vital that you have some savings that will go as a down payment. In today's times, if you get a joint home loan, the liability to pay off the loan falls equally on both the parties is a boon. Any loan against property, if taken, must have sound paperwork. If you are planning to take a home loan with a Co-applicant, then certainly you are going to benefit from that.

Higher Loan Ability:

If aiming at a big house then a joint home loan would fetch you wonderful results. Having an earning co-applicant, the ability to take the bigger amount of loan enhances, leading to fulfilling dreams of buying a massive property. In this, both the parties are eligible for the loan and the synergy of which brings more loan.

Tax benefits:

Although home loans in Delhi any way have lots of tax benefits, they become manifold if the loan is joint. The tax deductions are collective and hence, the owners of the home enjoy the benefits. There are variations in the tax benefits if the property for which the loan is taken is rented out.

Women as your joint applicant:

If you have a woman as your joint home loan partner, you can enjoy the benefits a woman gets on loans. The women borrower enjoys relatively lesser home loan interest rate than the usual. In this case, the woman applying for the loan with you must also have a share in the property. She must either own it solely or must be a joint owner of the property.

Like the coin has two sides, there are certain situations when the joint home loan must be avoided.

· if your eligibility has sufficiently met the loan requirement, then you must avoid taking a joint home loan.

· In the case, you already have a loan that exhausts your loan limit, then avoiding joint home loan is the best decision you can take.

· Your credit score has been hit and is low would also ruin the credit history of the co-applicant, so in such case, avoid the joint home loan.

· You wish to buy one property now and have plans to buy bigger property in near future, then a joint home loan should be avoided so as to avoid exhausting the limit.

· if you are on the verge of retirement, a joint home loan should not be opted for.