Advantages of Taking a Joint Housing Loan

Purchasing a home may be one of your biggest investments. You may want to buy a large home for maximum benefits. However, being able to afford a big house in a good location is one of the greatest limitations.

You may be able to enhance your budget by opting for a housing loan. However, your eligibility is based on different factors, such as credit score, income, age, and other existing debt obligations. Most lenders adhere to the norm whereby all your monthly installments must not exceed a certain percentage of your income.


To overcome the limitation of being eligible for a smaller loan amount, you may consider including a co-applicant. You may include between two and six individuals as your co-applicants. Here are the three benefits of availing of a home loan eligibility.

Higher tax benefits

Housing loans enjoy tax benefits under the Income Tax Act, 1961. When you include co-applicants, they are also able to take advantage of these benefits separately. However, the benefits are available only if the co-applicants are also co-owners of the property. Furthermore, they must contribute towards the repayment of the borrowed amount to take advantage of the tax benefits. Borrowers may deduct up to INR 1.5 lakh towards the principal repayment under section 80C of the Income Tax Act. Furthermore, they may deduct up to INR 2 lakh towards the interest on self-occupied property under section 24. For properties that are rented, the entire interest is eligible for the tax benefits. Therefore, the total tax benefits increase when you jointly apply for a housing loan. The actual benefits are determined based on each co-applicant’s individual contribution towards the interest and principal repayment.

Special rates for women applicants

Several lenders offer a special rate of interest to women applicants. The rate is a few basis points lower than the regular interest rate. Including your wife or mother in your housing loan application may help you reduce the applicable rate of interest. This will enable you to save a significant amount over the loan duration.

Eligible co-applicants

Co-applicants share the responsibility to repay the borrowed amount. The following relations may co-apply for a housing loan.

  1. Spouses, which is a common and preferred option
  2. Father and son or mother and son
  3. Parent and unmarried daughter
  4. Parent, son, and daughter where the parent is the owner and daughter provide an affidavit denying any claim on the property.
  5. Two or more brothers with a provisional grant when they share the same address and intent to live in a joint family

Applying for a joint home loan EMI calculator and avail of a housing loan that suits your requirements.

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