How joint home loan with your wife can help you save lakhs on repayment
Taking a joint home loan with your wife offers multiple benefits, including lower interest rates, significant tax savings up to Rs 7 lakhs, improved loan eligibility, and the potential for a higher loan amount. It also increases the likelihood of loan approval, making it a smart financial strategy for homebuyers.
Taking a joint home loan with your wife can be a game-changer for your finances. It offers lower interest rates, reducing your EMI burden, and allows you to save up to Rs 7 lakhs in taxes by claiming dual tax benefits on both the principal and interest. Additionally, a joint loan increases your eligibility for a higher loan amount, making it easier to purchase your dream home. This strategy also boosts the chances of loan approval, especially if one applicant has a strong financial profile.
Lower Interest Rates
When you take a joint home loan with a female co-applicant (e.g., wife, mother, sister), you can benefit from a lower interest rate, usually around 0.05% less than the standard rate. This reduces your overall EMI.
Significant Tax Savings
By taking a joint home loan, both you and your wife can claim separate tax benefits. Together, you can save up to Rs 7 lakhs in tax, with each person claiming Rs 1.5 lakhs on the principal under Section 80C and Rs 2 lakhs on the interest under Section 24.
Increased Loan Eligibility
A joint home loan can improve your loan eligibility, especially if your wife has a strong repayment capacity. This is particularly helpful if you face challenges due to a low credit score or income.
Higher Loan Amount
With a joint application, the combined income of both applicants is considered, allowing you to qualify for a higher loan amount. This can be advantageous when purchasing a more expensive property.
Easier Loan Approval
A joint home loan enhances the chances of loan approval, particularly in situations where individual applications might face rejections due to credit or income issues.