Save Up to 7 Lakhs in Taxes with a Joint Home Loan with Your Spouse! Discover 4 Key Benefits
Save Up to 7 Lakhs in Taxes with a Joint Home Loan with Your Spouse! Discover 4 Key Benefits
Nowadays, many individuals opt for home loans to purchase a house. If you apply for this loan together with your wife, you can save a significant amount of money. One of the main advantages is that you could save up to 7 lakh rupees on taxes, along with several other benefits. Understanding the perks of taking a joint home loan with your wife is essential.
Often, people encounter challenges in securing loans due to poor credit scores, insufficient income, or high debt-to-income ratios. In such cases, joint home loans can be beneficial. By including another person as an applicant, your chances of loan approval improve. If the additional applicant has a good repayment ability, it becomes easier to obtain the loan. This rule applies to any joint loan, regardless of whether the applicant is male or female.
If you include your wife as a co-applicant in a joint home loan, you may receive the loan at a slightly lower interest rate. A lower loan rate will also reduce your EMI. Generally, lenders provide a different interest rate for female co-applicants, which is typically about 0.05 percent (5 basis points) lower than the standard rate. Additionally, to qualify for this benefit, the woman must either solely own or jointly own the property.
A single applicant is evaluated for a loan based solely on their income. However, in a joint loan, the combined income of both applicants is taken into account, which increases the loan amount limit. It’s important to remember that the debt-to-income ratio for both you and your co-applicant should not exceed 50 to 60 percent.
Taking a joint home loan with your spouse can maximize your tax benefits. Both borrowers can claim separate income tax benefits when applying for a joint home loan, but this is only applicable if both applicants are co-owners of the property.
With a joint home loan, you can enjoy double tax benefits. Each of you can claim up to ₹1.5 lakhs on the principal amount under Section 80C, which totals ₹3 lakhs combined. Additionally, both of you can claim a tax benefit of up to ₹2 lakhs on interest under Section 24. Therefore, depending on the size of your home loan, you could claim a total tax benefit of up to ₹7 lakhs.
When you take a joint home loan, both partners share equal responsibility. If the EMI is paid on time, it helps improve the credit scores of both individuals. Moreover, since both partners are contributing to the EMI payments, the financial burden is shared, which helps prevent disruptions to the household budget.
