With the festive season fast approaching, if you’ve been contemplating a property purchase, the time to borrow a home loan could not be better. And if you’re already in the market for a home loan, or have begun your enquiries, consider applying for a joint home loan to enhance your chances of securing a home loan with competitive interest rates and other attractive offerings.

For families with dual incomes and additional income support, a joint home loan is a good financial idea. Be it with a spouse, a parent, a child, or even a sibling – when you apply for a joint home loan with a family member as a financial co-applicant, your loan eligibility is assessed considering all your combined incomes and repayment capacity. This could increase your home loan eligibility, making it easier to avail of a home loan that meets all your needs without compromising your repayment bandwidth and financial standing. 

Lenders typically allow up to six co-applicants on a joint home loan application, with a minimum of at least two. What’s more, all co-applicants are eligible for home loan tax benefits individually, under Section 80C and 24B – making for a good way to save on their tax payables as well.

Before you proceed with the joint home loan application, we recommend spending some time researching the required loan eligibility parameters, so you can avail of a higher loan sanction at a reasonable rate of interest without breaking the bank.

Who is the Ideal Joint Home Loan Co-Applicant? 

While you can choose to make any (eligible) family member a co-applicant, if you’re looking to enhance your eligibility through a joint application, it is prudent to assess the individual’s financial, credit and obligation profile. This is because, of course, a financial co-applicant with a stronger profile will help you avail of the most competitive terms. 

This, it is important that you don’t make joint home loan applications without due considerations and ensure that you include only those relations as financial co-applicants who can be easily approved by your lender. Here are some relations who commonly apply together for joint home loans: 

• Married couples 
• Father and son (wherein, the son should be the only child of the parents) 
• Any parent with an unmarried daughter (wherein, the daughter should be the primary owner of the property being purchased) 
• Brothers (wherein, they should reside together in the property in the future) 

Note that this list is generic, and your case may be reviewed against other unique eligibility parameters as well – specific to the lender of your choice. 

How Does a Joint Home Loan Help?

There are numerous benefits of applying for a home loan along with other co-applicants, and many lenders view it as a stronger loan application with a reduced risk profile. Here are some key reasons why you should consider applying for a joint home loan: 

1. Boosts Home Loan Eligibility 

When you apply for a joint home loan, it allows for the possibility of a higher home loan eligibility, subsequently translating to a smoother home loan approval and disbursal process. A significant perk of having financial co-applicants on your home loan application is that the lender considers every applicant’s financial standing and earning potential when assessing the consolidated repayment capacity. In such cases, even if one individual’s profile falls short of the mark, the others can supplement the shortfall.

            2. Secures Competitive Lending Terms 

Meeting or exceeding the home loan lender’s eligibility expectations allows applicants to avail of a home loan that comfortably meets their funding requirements without raking up a high interest outgo. Eligible salaried and professional applicants can access home loans at a competitive interest rate, starting as low as 7.70%* p.a. from reputed market lenders, such as Bajaj Housing Finance Limited. Their borrowers also have the option to link their home loan interest rates to the RBI repo rate, ensuring more transparency into the rate-setting mechanism.

Aside from this, borrowers can benefit from flexible repayment options, lengthy repayment tenors and attractive refinancing options, such as top-up loan worth Rs. 1 Crore* or higher – depending on their eligibility. You can hope to secure all of these once you and your co-applicants meet the lender’s eligibility mandate.

          3. Enables Tax Saving Benefits 

Home loans can pose as a good means to income tax benefits. The Income Tax Act allows for principal and interest deductions under Section 80C and 24B for all home loan borrowers, boosting their savings. To this end, all co-applicants on a joint home loan are eligible to claim these deductions individually – up to the prescribed cap.

It is important to note here that not all co-applicants have to be listed as property owners to claim the income tax benefits and are only required to contribute to the loan repayment, as scheduled. Above this, female co-applicants also enjoy special rebates and stamp duty privileges in select Indian states, further helping you to save more on your total cost of buying a house.

Apply for a Joint Home Loan Today 

First-time home loan applicants are advised to consider all the points listed above and make a joint home application to enhance the chances of receiving a sizeable home loan sanction at competitive interest rates. Paying close attention to the lender’s eligibility criteria also helps ensure that your home loan application is approved in one go, without any delays. 

Ready with all you need and want to apply for a home loan today? Consider applying for a home loan with Bajaj Housing Finance Limited, a 100% subsidiary of Bajaj Finance Limited, for competitive home loans with attractive borrowing terms. 

*Terms and conditions apply