As more and more women attain economic independence, it is normal practice for both partners to share in the management of the family’s money. There are several advantages to making major financial decisions, like buying a home or getting a Bandhan bank home loan along with your wife.
In case you and your wife have been thinking about getting a home loan together and purchasing a property together, here are the pros and cons to keep in mind:
Co-signed housing loan: Reduced rate of interest for women
With your wife as an applicant or co-applicant on a house loan, you may be eligible for a rate reduction of up to 5 basis points (0.05%) below the current market interest rate. You should keep in mind that the wife must be the principal or co-applicant on the aadhar housing finance home loan in order to receive the lower interest rate.
Joint property registration: Concession on stamp fees
Many first-time homebuyers who opt to finance a house purchase from Bandhan bank home loan with their wife are unaware of the concession provided under section 80C of the Income-tax Act, let alone the concession extended to female buyers. For tax purposes, you can write off up to Rs.1.5 lakhs of the stamp duty and registration fees you forked over when you bought the property. When a woman is the single or part owner of a property, stamp duty is reduced by roughly 1% to 2% in most states.
Keep in mind that you can only make this claim for a tax write-off in the year that the related expenses were paid. Furthermore, you may only claim this deduction once construction is finished and you take possession of the property.
Greater savings through deductions: As per 80C and 24b
One important thing to keep in mind is that you and your wife can only receive tax benefits from the aadhar housing finance Home Loan if she is a co-borrower and co-owner of the property. Even though she is paying the EMIs with you, she will not be eligible for tax benefits if she is only a co-borrower and not a co-owner. Both the principal and interest payments made by the couple on their Home Loan are tax deductible up to the limits set by Section 80C and Section 24. Nonetheless, EMI payments can only be made if both partners are joint property owners.
Borrowers can deduct interest payments made during the pre-construction period at the standard interest rate for Bandhan bank home loan under Section 24b of the Internal Revenue Code. This is important because many homebuyers take out loans to finance the purchase of properties that are still in the process of being built but whose possession is not expected to be received until much later. It’s possible to do this for up to five years (in 5 equal instalments). However, remember that the maximum amount that may be claimed remains set at Rs 2 lakh per year and that this includes interest payback for both the pre-and post-construction periods.
Each year, you can deduct up to Rs.2 lakhs in interest paid and up to Rs.1.5 lakhs in principal paid as tax credits. Partners can each claim the deductions that are their fair share of the property’s total cost. Keep in mind that the sum of all claims filed in a given year cannot exceed the sum of all principal returned during that year.
When a wife might be considered a joint candidate
The wife must be the sole or co-owner of the property.
The woman wanting to be a co-applicant must be the sole or joint owner of the property being used as collateral for the aadhar housing finance home loan application to be considered valid. She may be considered for co-applicant status if she is interested in sole or joint ownership of the property, even though she does not have a source of income.
Income from the wife’s job is considered when determining whether or not a borrower can afford a loan.
The second scenario where your wife can join you as a co-applicant on a mortgage is if she has a steady source of income that will be factored into the loan’s total eligibility and repayment capabilities. The husband has had a lot of trouble getting a Bandhan bank home loan because of reasons like his income being below the required threshold or having a low credit score. If this is the case, you may improve your loan approval odds by including your wage-earning wife as a co-applicant. Keep in mind that this is only possible if the lender finds your wife to be a suitable co-borrower based on her credit score, income, debt-to-income ratio, etc., when determining the interest rate on the Home Loan.
Who else besides a spouse can be a co-applicant on a mortgage? The answer to this question varies widely from lender to lender; there is no universal rule. Lenders often only permit certain types of relatives to apply for a home loan with you. These include parents, children, spouses, siblings, and brothers and sisters. However, the eligibility of any given relationship as a basis for being listed as a co-applicant on a house loan application would ultimately depend on the home loan provider’s internal policies.
For instance, certain home loan providers like aadhar housing finance may not approve brothers as co-borrowers due to the potential for property disputes in the future, which could lead to irregularities of default in joint Bandhan bank home loan payback.
In addition, certain providers of mortgage loans may not accept sisters as co-applicants because of the possibility of non-repayment following the sisters’ marriage.
You can make an informed choice about whether or not to include a woman as an application for a mortgage loan now that you know what it entails. However, you should consider your current financial situation, future plans, other EMIs, and other financial obligations before making any rash decisions or simply copying someone else’s.