Benefits Of Availing A Housing Loan Jointly With Your Partner

Housing Loan

No other feeling can match the happiness of living with your spouse or close relatives in your dream home. But, purchasing or constructing a property is a costly endeavour. And, the problem compounds when you think about buying the home all by yourself.

Thankfully, home loan calculators have made it easy to check the eligibility, explore the interest rates, and check how much you need to shell out every month. But, in case you feel that the EMI amount is too much, consider taking a joint home loan.

What is a Joint Home Loan?

A joint home loan is the same as a standard home loan. The only difference is that you can apply for the loan with a family member, like your spouse, father, mother, son, daughter, or siblings. You can also apply for the joint home loan with a close relative (other than the ones mentioned above) if they have a stake in the property. It is good to know that both the applicants should have a stable source of income, and must be either salaried or self-employed. Also, both applicants need to be the citizens of India.

The Top-4 Benefits of a Joint Home Loan

Enhancement in Loan Amount

When you use a home loan calculator to check your loan eligibility, it shows you the loan amount you can get as a sole borrower. Converting your home loan to a joint option can increase your eligibility substantially. While doing so, the lender clubs the income of both applicants into one and calculates the eligibility. 

Hence, by opting for a joint home loan, you can increase your loan amount.

Higher Tax Benefits

A joint home loan allows both applicants to claim tax benefits. Each of the applicants may claim a tax deduction of up to INR 1.5 lakh (under Section 80C) for the principal amount you repay. Moreover, Section 24 allows both of you to claim a tax deduction of up to INR 2 lakh on the interest component. However, to claim the deductions under Section 24, you have to prove that you live in the mortgaged house. A home loan calculator gives you an idea of the tax you can save every year.

Relaxation in Interest Rates

Some lenders offer a discount in joint home loan interest rates where the co-applicant is a woman. Such discounts can reduce your net liability reasonably. Additionally, as your EMI liability reduces, your spending power improves, prompting you to pay off your loan bills easily, or early. And, payment of loan dues on time will increase your credit score, which can make the interest rate of future loans even more attractive. 

Succession Planning Becomes Easy

Claiming ownership to the property in the case of the unfortunate death of the property owner is a time-intensive and gruelling process. A joint home loan can come as a saviour during such times. As a joint home loan follows the ‘either or survivor’ model, in the case of an unfortunate demise of the primary or secondary owner, the other owner automatically becomes the rightful owner of the property.

Along with other details keep your documents ready for the same. Good Credit Score also plays a important role to get fast approval on loan. Credit Score created by Credit Information Bureau (India).


Ideally, a home loan calculator should be your starting point when you want to fulfil your cherished dream of owning a house. However, by applying for the loan with a co-applicant, you can get more benefits from a home loan. Hence, a joint home loan can give you more reasons to write your name on the property papers.

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