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The benefits are available under Section 24 for interest paid and under Section 80C for the principal repayment, subject to certain conditions. Couples usually opt for a joint home loan, as this can enhance their home loan eligibility. However, there is considerable confusion, about who can claim the home loan benefit and how much tax benefit one can claim, with respect to joint home loans.
Choosing a combined house loan, tax and investment experts say, will increase a couple's home loan eligibility. One of the highlights of taking a home loan is that it aids you in making tax savings, when you invest in a fixed asset. This would ultimately reduce the overall cost of loan considerably. Under Section 80C and Section 24 of the Income Tax regulations, those who avail home loan are eligible to get tax rebates. Tax benefits are divided between the co-applicants in a joint loan and the division takes place in proportion to the manner in which the property is owned by each co-applicant.
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Magicbricks is only communicating the offers and not selling or rendering any of those products or services. It neither warrants nor is it making any representations with respect to offer made on the site. To get an edge at your home loan eligibility, you can mention your additional income and also state the sources. Depending upon the applicants of the loan, the tenure can vary from year to year. • To avail, this benefit the home loan should not be over Rs. 35 lakh, and the value of the property should be within Rs. 50 lakh.
Since both are applying for the loan, both are equally liable for repayment. With this provision, you can apply with a co-borrower and enhance loan eligibility significantly. Since you share the responsibility of repayment, lenders are also likely to offer a higher loan sanction.
SBI Home Loan Eligibility for Women
SBI Frequently asked questions , has listed questions and answers, all supposed to be commonly asked in context of Home Loans. Please get answers to your common queries regarding the home loan, security, EMIs, etc. Explore your dream house from a bouquet of exclusive products designed for each customer segment. SBI welcomes you to explore the world of premier banking in India.
Borrowers are eligible for a tax deduction of up to Rs. 2 lakh per annum on interest paid on home loan, under Sec 24. It would be wiser for each applicant to take separate life insurance policies in order to cover the loan burden in case either of the borrowers dies. When you take a home loan jointly with your wife, mother, daughter or sister, and the property is owned by her either individually or jointly, some states offer a lower fee for property registration.
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Joint home loan tax benefits are an extension to the tax exemptions provided by home loans. As we all know, we can claim tax benefit of up to Rs. 1 lakh of the principal amount of home loan under section 80C and up to Rs. 1.5 lakh under section 24 of income tax act. In the case of joint home loans, applicant as well as co-applicant can enjoy tax benefit for the contributions towards the loan. The amount of tax benefit that can be availed here would be according to the proportion of contribution, subject to the limits specified above. Working couples are highly eligible for a joint home loan as both the applicants are working, and there will be two incomes to support the debt.
In such a situation, you cannot claim the tax benefits on the home loan, as the tax benefits are available with respect to the amounts paid by you. If the property is still under construction, the benefits are not applicable. In a joint home loan, since the bank combines incomes of the applicants involved, a proportionately higher loan amount of loan will be sanctioned to them. Banks will be ready to offer you higher loan amounts if you opt for a joint home loan. This is because of the higher repayment capacity as there is more than one person who can repay this loan.
Unless other factors indicate otherwise, the shares in the house can be assumed to be equal. The home loan which I have with Indian Overseas bank is a joint loan with my father. The tenure of the loan is 20 years with an interest rate of interest was also reasonable. There was no processing fees charged as my father is a retired employee of the same bank. My experience with SBI Bank was good for the home loan I have taken.
Improve your credit score– Being disciplined with your finances lead to a better credit score. A good score is generally above 700, and getting a good score will improve your chances of getting a Home Loan at a low rate. HDFC Ltd. reserves the right to withdraw the offer on interest rates at any point in time, without any further intimation or notice, and no claims shall be entertained by HDFC Ltd. in this regard. Various Builder/Developer who have advertised their products.
As a co-applicant, you can include your spouse if they are likewise employed. In addition to stamp duty exemptions, there are also interest rate reductions and tax savings on both the principal and the interest. A house loan's maximum tax advantage might be up to 7lakh per year, including principal payments and interest. Joint home loans are available only to spouses who are joint owners of the property. Certain advantages are available under the Income Tax Act of 1961 with relation to house loans. Section 24 provides home loan co-owner tax benefits for interest payments, whereas Section 80C provides tax benefits for principal repayment, subject to specific requirements.
Banks and lenders won't care if a borrower divides the loan amount with a family member or a known individual. With a combined home loan, your chances of getting a larger loan with lower interest rates increase. Each joint owner's payment history can be used to determine their portion of the house loan. Preparing an unstamped Memorandum of Understanding to identify the various interests of each joint owner in the property is always recommended to avoid future problems. Payment information for each joint owner might be included in a memorandum of understanding.
A co-applicant aka co-borrower is the partner along with whom you intend to apply for a home loan. The co-applicant can be your parents, spouse, children or siblings. Repayment for a joint housing finance plan can be done either through a joint account of the co-borrowers, or by splitting the EMI equally or proportionally among them.
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