Buying a home is a milestone goal in most people's lives and the earlier they achieve this goal, the more peaceful they feel. In current conditions building or buying a home without a loan is a difficult task especially if you are in your mid-twenties and early thirties.
True earlier generations waited for nearly a lifetime to save money for this goal, but this is not the case with the current generation, and with rising real estate prices this does not seem a sensible option as well. Nowadays, everyone wants to achieve goals early so that they can enjoy the fruits of their labour, when they are brimming with youth.
The younger you are when you take the loan the better it is, as you will be able to pay it off in the next 20-odd years, and will be able to own a home before you are well into your retirement.If taking a loan early is an advantage, taking a joint home loan is a double advantage. Why? Listed below are the reasons.
a. The most significant advantage of a joint home loan is the increase in your loan eligibility. Incomes of the individuals taking a joint home loan are combined to determine the eligibility and it results in a higher loan amount.
b. Tax rebates are yet another advantage - as each of the individuals taking a joint home loan is eligible for individual tax benefits under Section 80 C currently for principal repaid and under Section 24 for interest repaid. However, these tax deductions are capped at 1 L for the principal repaid and 1.5 L for the interest repaid for each individual.
c. The number of people who can avail a joint home loan can be anywhere between four and six, depending on their individual credit profiles.
d. There is however one condition when banks lend money to joint home loan applicants, which is, all co-owners of the property should also be co-applicants, but the reverse need not be true.
Joint home loans are very much possible, but they do have their restrictions in terms of whom you can pair with for availing the loan.
Source : Rediff Business
A home loan may go by many labels like a pay day progress, advance loan, or postponed put in financial lending products, but in the end they are all the same thing. These are financial lending products that normally are expected to be paid back by your next pay check or pay period.
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