Considering the modern-day lending scenario, most people looking forward to buying a home are financially conscious. They are always upfront for all the opportunities to make a home loan deal profitable. This is the result, join-ownership of a property has become very popular these days. Couples buying a home in a joint venture are getting a wide range of financial benefits just by choosing joint property ownership 123musiq.ws.
This post reveals some highlighted benefits of owning a property jointly.
Maximum Chances of Home Loan Eligibility
When you opt for joint ownership, the co-applicants can apply for a joint home loan. Lending institutions determine the eligibility for home loans based on the income as well as the repayment ability of the borrower. So, if you add your spouse to the home loan application, you can easily boost eligibility for your home loan.
You will get a higher loan amount to buy your dream house or property. Additionally, the burden of the loan amount will be shared jointly and eventually; it makes the repayment of the loan easier.
Applying home loan for joint ownership brings tax benefits. When both husband and wife are equal property owners and contribute equally to the loan repayment, both can claim tax deductions individually. Section 80C of the Income Tax Act enables an individual to claim up to 1.5 lakh INR yearly on principal repayment.
One can also claim up to 2 lakhs INR on interest payments if you live on your property. But if you have offered the property for rent, there will be no limit on the tax deductions you can claim for interest maru gujarat.
Low Stamp Duty
Owning a property jointly with your spouse will benefit you as you will have to pay a low percentage of stamp duty while registering the property. Usually, women need to pay lesser stamp duty compared to men.
In many states across the country, there is a difference of at least 2% in the stamp duty of men and women. So, adding the wife’s name as the first owner can help in saving significantly on the stamp duty.
Sanction of More Funds
In case there is only one applicant for the loan, the lending institution will approve the loan amount based on income and creditworthiness. The involvement of two applicants in the home loan application will always help get sanctioned for a higher amount, given the application must comply with all the measures. If any applicants are women, they can also increase the loan’s affordability as lenders offer affordable interest rates to women in most cases.
The Succession of the Property
When there is single ownership, transferring the rights of the property gets very complex and time-consuming in case of the owner’s death. But if there is joint ownership with the spouse, the property can be transferred easily. The co-applicants surviving member gets the property’s ownership by default.
Given the benefits, it makes sense to apply for joint property ownership. Make sure to get in touch with a professional DSA Partner to make the most of your home application and get it done quickly. Never be in a hurry in choosing lending institutions. Feel free to share your thoughts r queries regarding the discussion below in the comment section.