Home loan applications, in contrast to the previous decade, has become more frequent. Today, thanks to the recent change in interest calculation patterns, the introduction of MCLR system, and the announcement of various housing subsidy schemes - buying a home has become even more easier. That said, if you are still short on eligibility due to your income or work experience, you can ask your husband/ wife or either your friends or family members to co-sign your loan application.
Applying with a co-applicant for a joint home loan is a sure shot method of increasing your home loan eligibility, and ensure higher chances of getting approved increases largely. To make this simpler, you must know that your home loan eligibility is directly proportional to how much you earn every month, and how much out of your monthly income can you save to pay your EMIs. So, when you apply individually, your repayment capacity is decided solely based on your income. However, when you apply with a co-signer, repayment capacity calculation or home loan eligibility calculation also takes the other person’s income into account. Thus, if both the applicants are earning, the repayment capacity of the duo increases and so the eligibility improves.
The other perks of joint-home loan application includes:-
Discount on registration fee if the co-signer is your wife.
Both applicants become eligible for claiming income tax benefits under section 80C, 24B and 80EE (80EE is only for applicants buying a home for the first time).
Do check with your potential lender if they accept joint home loan applications.
