Simplified facts and practical information about home loans in a simple language while avoiding the technical jargon associated with it! I was confused with Finance in Home Loans and this Blog is an simple expression! I am a Healing Artist, and not attached with any Financial Commercial Institution and am not responsible for any financial links posted Take care and surf information before committing!
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14 August 2011
Advantages and Disadvantages of Joint Home Loans
50 lakhs, 70 lakhs and one crore! one flat cost and you apply for a home loan..you may get the loan but how will you repay it and how much will you save. You need a really good salary! Here the joint home loan option comes to the rescue for the home purchasers.
By applying jointly for the ownership of the flat you can get the home loan easily and also share the burden of repayment together with the co-applicant. Let us name a few benefits of joint home loans. The most important point here is both the applicants can get tax concessions and rebates on this loan amount. Even tax benefits are allowed on the interest amount. As both repay the EMIs they both can get tax concessions on the amount paid as repayment of the home loans.
But a disadvantage is that both co-applicants becoming co-owners are responsible for the monthly payments and in case one of the borrowers is not able to repay his share the other has to pay it since they have ownership. It may also be possible that one individual may suffer sever losses then they will not be able to repay the home loan, but they will have joint ownership of the flat since they have their name registered as a co-owner of the house.
Also the lending companies are not very much in favour of joint home loans and they prefer clear titles of ownership for approval of home loans. It is better to apply for a joint home loan with your spouse as this is considered one family. Most times the lenders do not prefer joint applications from sister-brother or cousins and other family members because in the beginning all relationships are smooth but as time passes, and a home loan is definitely a long term commitment, finances and repayments of the EMI on time does become a problem. Hope this Helps! All the Best from Rizwana! How to Earn Money from Your Home Loan NRI option of Easy Home Loan from ICICI How to settle Joint Home Loans in Case of Divorce