If you are going to buy a house, then instead of buying it in your name alone, buy it with your wife. Make her a co-owner too. This will give you a lot of benefits in all things, from loan to income tax. Also, you will save lakhs of rupees. Know more about this here.
Exemption from stamp duty
The central and state governments are also encouraging home ownership for women. This is the reason why relief has been given in everything from loans to stamp duty fees in the case of women. In many states, stamp duty fees are exempted on registering property in the name of women. This includes many states like Delhi, UP.
Loan limit increases
A single loan applicant is given a loan according to his income. But if your wife is working and you apply for a joint loan with her, then the total income of both is considered. In such a case, the limit of the loan amount increases. Even if the joint home loan is taken with someone other than the wife, the benefit of the increased limit is available. But keep in mind that the debt and income ratio of you and your co-applicant should not be more than 50 to 60 percent.
Home loan is available at a cheaper rate
If you make your wife a co-applicant in a joint home loan, you will get a slightly cheaper loan. If the loan is cheaper, it will also affect your EMI. Usually, lenders give a different interest rate for home loans for any female co-applicant. This rate is about 0.05 percent (5 basis points) lower than the male rate. However, to avail this benefit, the woman should be the owner of the property either alone or jointly.
You can save up to Rs 7 lakh in income tax
If you take a joint home loan with your wife, you will get double the tax benefit. Actually, on applying for a joint home loan, both the persons taking the loan can avail the benefit of different income tax benefits. But this benefit will be available only when both the applicants are also the owners of the property. In this, both the husband and wife can claim Rs 1.5-1.5 lakh each on the principal amount, i.e. a total of Rs 3 lakh under 80C. At the same time, both can get a tax benefit of Rs 2-2 lakh on the interest under section 24. In this way, you can get a total tax benefit of up to Rs 7 lakh. However, it will also depend on how much your home loan is.
Home loan will be available easily
Many times people face difficulty in getting a loan due to poor credit score, low income or imbalance in the ratio of other types of debt and income. In such a situation, a joint home loan is helpful. By adding another person as an applicant, the eligibility for getting a loan increases. If the other person involved in the joint loan has a good repayment capacity, then the loan is easily available. However, this rule applies to any kind of joint loan, whether the joint home loan is taken with a female applicant or a male applicant.
Effect on credit score
If you take a joint home loan, both the husband and wife will be equally responsible. In such a situation, if the EMI is paid on time, it helps in improving the credit score of both. Apart from this, when both the partners pay the EMI together, the entire burden does not fall on one person. This also does not spoil the household budget.
