Joint Home Loan: Benefits, Rules and Things to Check

A joint home loan is taken by two or more people together – most often a husband and wife, or a parent and child. It is one of the easiest ways to buy a bigger home or get approved faster.

Who can be a co-applicant

Lenders usually allow close family: spouse, parents, children and sometimes siblings. If the co-applicant is also a co-owner of the property, many lenders require them to be a co-borrower.

Benefits

• Higher loan amount: both incomes are counted.
• Tax benefits for both: under the old tax regime, each co-owner who pays the EMI can claim deductions separately. See our home loan tax guide.
• Women co-owners: some lenders offer a small rate benefit and some states charge lower stamp duty for women.

Things to check

• Both borrowers are fully responsible for the whole loan. A missed EMI affects both CIBIL scores.
• Agree in writing on ownership shares.
• Think about what happens if one person stops paying or relationships change.