Joint Home Loan Benefits: Claiming Home Loan Interest as a Couple

Buying a home is a big step for many couples. One of the best ways to finance this dream is through a home loan. But if you and your spouse are considering this route, you might wonder: Can both husband and wife claim home loan interest? The answer is yes, and in this guide, we will explore how this works and the benefits of taking a joint home loan.

Joint home loans explained

A joint home loan is a loan taken by two or more individuals, typically spouses, to purchase a home together. This type of loan has several advantages:

1. Higher loan amount: Since both incomes are considered, you may qualify for a larger loan amount. This is beneficial if you are looking to buy a more expensive property.

2. Lower interest rates: Lenders often offer lower interest rates to joint borrowers. This can lead to lower EMIs (equated monthly instalments) and save you money over the loan's tenure.

3. Tax benefits for both: Both partners can claim tax deductions on the home loan interest paid, making it a financially smart move.

Understanding home loan interest claims

Joint Home Loans enable borrowers to enhance their income tax savings since each financial co-applicant is eligible for deductions, as long as other conditions are met. Here is how financial co-applicants can benefit from a joint home loan:

1. Section 80C: Under Section 80C of the Income Tax Act, both husband and wife can claim a deduction of up to Rs. 1.5 lakh each on the principal repayment of the home loan. This means a combined deduction of up to Rs. 3 lakh.

2. Section 24(b): Under Section 24(b), both can claim a deduction of up to Rs. 2 lakh each on the interest paid on the home loan. This means a combined deduction of up to Rs. 4 lakh. This benefit is available if the property is self-occupied.

Eligibility for claiming tax benefits

To claim tax benefits on a joint home loan, both husband and wife must meet certain conditions:

1. Co-owners:Both must be co-owners of the property.

2. Co-borrowers:Both must be co-borrowers of the home loan.

3. Repayment:Both must contribute to the repayment of the loan.

How to claim tax benefits

To claim tax benefits, both husband and wife need to provide proof of ownership and loan repayment. This includes:

1. Loan statement:A statement from the bank showing the principal and interest paid.

2. Ownership documents:Documents proving joint ownership of the property.

3. Repayment proof:Bank statements showing the EMI payments made by both.

Things to consider before taking a joint home loan

1. Credit scores: Both husband and wife’s credit scores will be considered when applying for a joint home loan. Make sure both have good credit scores to improve the chances of loan approval.

2. Legal agreement: It is important to have a clear legal agreement outlining each party’s responsibilities. This can help avoid disputes in the future.

3. Insurance: Consider taking a home loan insurance policy. This can provide financial protection in case of unforeseen circumstances like job loss or death.

Choosing the right home loan

When you are ready to buy a residential property, consider applying for a home loan to help manage the cost. Bajaj Housing Finance Home Loan is a great option for potential homebuyers. Here are some benefits of choosing Bajaj Housing Finance:

1. High loan amount: Get a home loan of up to Rs. 15 crore* to turn your dream home into reality.

2. Low interest rates: Enjoy interest rates starting from 8.25%* p.a, with EMIs as low as Rs. 741/lakh*.

3. Quick approval: Get approval within 48 Hours* of applying – sometimes even sooner.

4. Long repayment tenure: Repay your loan comfortably with tenure of up to 32 years.

5. No foreclosure fee*: Individual borrowers with a floating rate of interest can prepay or foreclose their loan at no extra charge.

6. Easy application: Benefit from our doorstep document collection service for a hassle-free process.

7. Balance transfer facility: Transfer your existing home loan and get a top-up loan with better terms.

Ready to take the next step toward your dream home? Apply for a Bajaj Housing Finance Home Loan today.