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Why You Should Consider Owning a Property With Your Spouse?

  • Highlights

  • Lenders award larger loans to joint applicants

  • Both borrowers can claim tax deductions

  • Stamp duty is lower for properties owned by women

  • Co-owned properties are easy to transfer to next of kin

If you are married and are looking to buy your first home, you may be wonder whether or not it is prudent to jointly own the property with your spouse. While co-owning a property comes with its fair share of paperwork—and will require both homeowners’ signatures for any and all transactions—there are several benefits to co-ownership that make it a worthwhile financial decision. Here’s a few reasons why, when it comes to owning property, two names are better than one.

Enhanced tax benefits

When you apply for a joint home loan, you are required to name both homeowners in the application. Similarly, when you file your taxes, both of you can claim home loan tax benefits. You can each claim up to Rs.1.5 lakh on the principal payment (as per Section 80C) and up to Rs.2 lakh on the interest repayment (as per Section 24). Besides, if you are first-time homeowners, you can claim an additional Rs.50,000 under Section 80EE on payment towards interest of the joint home loan.

Additional Read: Types of Home Loans

A higher total loan amount

In the case of a joint home loan application, a lender will take both borrowers’ salaries into account. A higher combined income is likely to encourage lenders to offer you a higher loan amount as well. Use a home loan eligibility calculator to determine the loan amount you would be eligible for.

When you take a Joint Home Loan from Bajaj Finserv, you can borrow a high loan amount that is disbursed in just 72 hours. Besides, you can choose a flexible tenor to repay it as per your convenience.

Lower stamp duties on homes owned by women

In a bid to promote homeownership by women, the government of India levies significantly lower stamp duties on homes owned by women—both as a joint owner or the sole owner of the property. While the exact percentage varies from state to state, in most cases the stamp duty is around 2% lower for women. Many lenders also offer lower home loan interest rates to women borrowers.

Additional Read: RBI Home Loan Guidelines

Home Loan EMI calculator

Ease of succession

In case you own a property by yourself, if you suddenly pass away, the issue of succession could get complicated. However, in case of joint ownership, the property naturally transfers to the co-owner, who can then make suitable arrangements for further transfer to the next in line—either by naming a new co-owner or completely handing over the property to the next of kin.

Differences between a co-borrower and co-owner

It is important to remember that taking a joint applicant home loan is not the same as co-owning a property, especially if one of the owners is not an earning member. Here, the danger is that in the case of the death of the earning member, the non-earning member will be responsible for repayment of the loan—and with no income, they may find they have to foreclose the property entirely.

Additional Read: Home Loan Without Down Payment

Now that you know the pros of choosing to apply for a joint home loan, you can decide whether or not this option is suitable for you. As is the case with any loan, explore the terms, conditions and features offered by multiple lenders and then zero in on the loan that matches your needs closely.

Bajaj Finserv brings you pre-approved offers for personal loans, home loan, business loans and a host of other financial products. Not only does this simplify the process of availing financing, but also helps you save on time. All you have to do is share a few basic details and check out your pre-approved offer.
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