Just as two hands are better than one for lifting a heavy load, two incomes can make the dream of owning a home much easier and more attainable. When you and your partner buy your house together, combining your incomes for a Joint Home Loan increases your chances of getting better loan terms and lower interest rates. This strategic decision can simplify the path to homeownership and ensure your financial stability.
Joint property registration: Secure your legacy!
Registering a property jointly with your spouse simplifies legal processes and ensures peace of mind. Should one partner pass away, joint registration means the surviving spouse will naturally inherit the property without the complications that often arise in probate. This forward-thinking approach prevents potential disputes among other family members, ensuring that your property affairs are clear and undisputed.
Open communication
Buying a home is a big decision, and you and your partner must discuss everything openly. Discuss your finances, long-term goals and your future together. Getting advice from financial advisors and legal experts is also a good idea. They can help you understand all the details and make the best decisions for your situation.
Doubling your tax benefits
A significant advantage of a Joint Home Loan is the ability to double your tax deductions under various sections of the Income Tax Act:
- Interest deduction under Section 24(b) of the IT Act: You and your spouse can each claim a deduction of up to ₹2 lakh on the Home Loan interest paid, totalling ₹4 lakh together. To get the most out of the benefits and understand the associated conditions, it's highly recommended to consult a tax professional or banker.
- Principal repayment deduction: Each of you can also claim up to ₹1.5 lakh for the principal repayment under Section 80C, effectively allowing you to double this deduction to ₹3 lakh collectively.
- Stamp duty and registration charge deduction: Joint Home Loans offer tax advantages beyond principal and interest payments, including a deduction for stamp duty and registration charges under Section 80C. Co-borrowers can claim up to ₹1.5 lakh for these expenses in the year they were incurred.
Financial perks of Joint Home Loans
Joint Home Loans do not just facilitate securing higher loan amounts, but often come with favourable terms -
- Lower interest rates: Many banks offer lower interest rates on Joint Home Loans, particularly when the primary or one of the co-applicants is a woman.
- Reduced costs: The potential benefits for female applicants may include reduced stamp duties and lower loan processing charges, adding to the financial incentives.
- Shared financial responsibility: By sharing the loan repayment, both partners lighten their individual financial burdens while contributing to their mutual goals. This shared responsibility can make managing household finances easier and more effective.
Considering a Joint Home Loan? Axis Bank Home Loans offer attractive interest rates and terms to help you and your spouse build your dream home together.
Also Read: Top 10 advantages of taking a Home Loan
Conclusion
Taking a Joint Home Loan and registering your property jointly are more than financial decisions — they are commitments to a shared life and mutual support. These steps secure your financial future through substantial tax benefits and improved loan conditions and ensure that your home, a symbol of your partnership, remains within the family, safeguarding your spouse's rights. With each other's support and the right planning, you can turn the dream of homeownership into a reality, creating a place you both can call home.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
