Benefits of a Joint Home Loan

Benefits of a Joint Home Loan

If you have been contemplating a new property purchase, taking out a joint home loan could benefit you and your family’s finances. The rise in dual-income families and a considerable uptick in their disposable income makes it possible for spouses, or in certain instances, parents and children or even siblings, to apply for a home loan together without exceeding their budgets.

Benefits of a Joint Home Loan

One of the prime benefits of co-signing a joint home loan is the comfort in repayment wherein two or more people can share the repayment burden, ensuring that EMIs are paid on time while still safeguarding their personal finances. Usually, lenders allow up to 6 co-applicants on a home loan, with the minimum being at least 2.

Aside from the significant ease of repayment, joint home loans also bring forward other advantages while applying for the home loan itself. From an increased home loan eligibility to the possibility of a higher loan sanction, joint home loans have a lot to offer to aspire home buyers.

Who Can be a Co-Applicant?

Before we look further into the benefits of applying for a joint home loan, let us first understand who can be eligible to apply as a co-applicant on a joint home loan. The following are the relations that can comfortably pass the co-applicant requirements:

  1. Married spouses
  2. Father and son, provided the son is the only child in the scenario
  3. Parents and unmarried daughter, in which case the latter must be a primary owner of the property
  4. Brothers, with the intent of residing in the property together

Before you apply for a joint home loan, consider who you are applying with, as several lenders may be wary of certain relations becoming co-applicants for their subsequent legal implications.

Joint Home Loan

What are the Benefits of Availing of a Joint Home Loan?

There are several notable benefits of taking out a joint home loan and many lenders recommend it as a healthy borrowing practice. Read on to understand the features of a joint home loan better.

1. Increased Home Loan Eligibility

Applying for a joint home loan eases the eligibility aspect of the home loan application process as more income-earning individuals mean a larger repayment capacity. Apart from this, even if one co-applicants profile falls short in terms of their credit score, income, or age, the other co-applicants can supplement the deficit and ensure that the eligibility criteria are met adequately.

2. Competitive Home Loan Terms

Surpassing the home loan eligibility criteria opens several avenues for borrowers, including competitive home loan interest rates and a sizeable loan sanction. As every co-applicants repayment capacity and income profile are accounted for, lenders can be more lenient toward offering a lower interest rate or a higher credit line.

Even in terms of repayment, a large sum may not pose a problem, as the EMI burden is shouldered by all co-applicants equally, allowing ample breathing space.

3. Home Loan Tax Benefits

Home loans, as an investment, bode well for tax benefits. However, when co-applicants jointly take out a home loan, everybody is eligible to claim the principal and interest deductions that the Income Tax Act allows for Indian citizens. Joint home loan borrowers can claim deductions individually under Sections 80C and 24B.

Above this, female co-applicants also enjoy special privileges such as reduced stamp duty charges if they are listed as the primary property owner. This can help save on the total cost of the property purchase.

Note that all co-applicants don’t need to be listed as the co-owner of the property, but it does help claim additional benefits. However, even if they are not the legal owners, all co-applicants are liable to contribute to the repayment of the home loan equally.


If you have paused your home loan borrowing plans because of not being able to meet all the eligibility criteria effectively, you can consider co-applying for a joint home loan to buy the house you desire. Despite your limitations, you can still enhance your credit profile as you service the home loan, making you more suitable for other investments or loans you may want in the future.

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