Our house is where we go to feel secure and at ease. We also spend some of our most treasured moments there with our loved ones. Almost everyone hopes to one day be able to afford a home. However, the price of real estate could occasionally make achieving that goal very difficult. Thankfully, mortgages can save the day. With the help of a mortgage, you can more easily afford to purchase the house or apartment you desire. You can also apply for a shared house loan to broaden your pool of candidates for mortgage financing.
A combined mortgage can actually help you afford the home you’ve always wanted. In this piece, we’ll look at the benefits of a shared house loan, who can apply, and the prerequisites.
Who is eligible to co-apply for a mortgage?
A close relative could be added as a co-applicant on a house loan to boost eligibility. There is no requirement that a close relative also possess property. Anyone who is also a co-owner of the property, outside from immediate family, may be added as a co-applicant.
Getting a little help is typically advantageous when applying for a loan. The same is true when you apply for a home loan. Among a joint’s key benefits are the following:
Increased loan sanctioned amount
The most obvious benefit of a shared home loan is the potential for securing a larger sanctioned loan amount. This is due to the fact that the lender now considers two incomes rather than just one when evaluating the application. As a result, you are no longer forced to settle for a home that is less than you had hoped for because of a lack of funds. Spend more money and select the residence you like in the community of your choice. Since buying a home is typically a once-in-a-lifetime decision for most of us, you would not want to settle for a property that is less than ideal just because you are short a few lakhs of rupees.
Two persons will be liable for repaying the loan if you and another person co-apply for it. As a result, nobody is accountable for covering the high EMIs by themselves. The fact that two persons are in charge of paying off the loan makes things considerably simpler and increases customers’ sense of security. Even while your spouse or other family members might be willing to help you with a housing loan that is in your name, legally adding them as joint applicants may increase their sense of ownership over the situation and make them more responsible for making regular EMI payments alongside you.
In the long run, having a co-applicant on the loan can possibly enable you to pay off your debt more rapidly.
Because you have two incomes available to pay the loan rather than just one, you may decide to choose bigger EMI rates each month. As a result, rather than taking out a 30-year mortgage, you might choose for one with a shorter duration, such 20 years or fewer. By selecting a home loan with a shorter term than you would have otherwise been required to pay in interest payments, you will save a significant sum of money. You can use home loan EMI calculator
More tax advantages
Each co-applicant may also be eligible for particular tax benefits relating to the mortgage. Both the principal and interest of the loan are subject to tax benefits. Joint borrowers and co-owners of a home loan are eligible for this tax benefit under Section 80C of the Income Tax Act. To be eligible for these tax benefits, however, the co-applicant or co-borrower of the loan must also be a co-owner.
Also Read: How To File Self-Employment Tax In the USA