As more women become financially independent and savvy, it is becoming more common for spouses to share responsibilities for managing the family’s finances. There are several benefits to making these choices with your wife, especially if you want to purchase real estate and obtain a mortgage for your dream home. The benefits and requirements of getting a combined mortgage and property with your wife are as follows:
On joint mortgages, female borrowers get lower interest rates.
When you apply for a joint house loan with your wife as the applicant/co-applicant, most lenders will offer a lower home loan interest rate of up to 5 basis points (0.05%) on the ordinarily applicable interest rate given as Home Loan Interest Rates All banks. This enables women to get Best Home Loan Interest Rate. Keep in mind that in order to qualify for this lower rate, the wife must both be the primary or joint applicant for the mortgage as well as the owner or co-owner of the property.
Stamp duty costs are reduced when properties are registered jointly
Many people who jointly purchase a home are unaware of the tax benefits for women as well as the less well-known relief provided by Section 80C of the Income Tax Act. Stamp duty and registration fees up to Rs. 1.5 lakh that were paid at the time the property was purchased may be written off for that fiscal year. For homes owned singly or jointly, women often qualify for stamp duty savings ranging from 1 to 2 percent.
You must request this deduction within the same tax year that the related expenses were made, so keep that in mind. The property must also be in your possession and finished developing in order for this deduction to be valid.
More tax benefits Sections 80C and 24
First and foremost, always remember that in order for you and your wife to be eligible for tax advantages on a home loan, she must be both a co-borrower and a co-owner of the property.
Even if she divides the EMIs in half, if she is merely a co-borrower and not also a co-owner, she will not be qualified for tax deductions. The couple may individually claim the deductions for principal and interest payments (at the Best Home Loan Interest Rate) depending on the current mortgage interest rate and in accordance with sections 80 C and 24 of the tax code. The house must be jointly owned by both partners, and each is in charge of paying their own EMI.
Even these borrowers are qualified to claim a tax deduction under Section 24b for the interest paid during the pre-construction phase at the applicable Home Loan Interest Rates All banks
because many homebuyers choose to obtain a mortgage in order to purchase a property that is still being built and whose possession is anticipated to be taken at a later date. This can be done for up to five years (in five equal installments). Pre- and post-construction interest payments are still subject to the yearly cap, which is set at Rs 2 lakh.
The maximum annual deduction for principal and interest payments is 1.5 lakh and 1 lakh rupees, respectively. Depending on their individual equity shares in the property, couples are permitted to file separate tax returns and claim the deductions. It’s important to know that no single claim can be lodged for an amount greater than the total principal debt due for that specific year.
A further interest decrease of up to Rs. 1.5 lakh has reportedly been made accessible under the affordable housing program for loans made between 1 April 2019 and 31 March 2022, according to comments made in this year’s budget 2021. This has had a big impact on the government’s 2019 announcement that it will provide homes for everyone. Loans are protected through March 31, 2022. To qualify for a tax deduction under section 80EEA, the petitioner must also be a first-time home buyer and the housing property’s worth cannot exceed Rs 45 lakh.
Under what circumstances could you and your wife submit an application together?
She must be the sole or co-owner of the property.
In order to be eligible as either the primary or co-applicant for the mortgage, the wife must be either the owner or co-owner of the subject property. If she has joint ownership of the property, she may still be eligible to act as a co-applicant even if she is unemployed.
When deciding whether or not the wife is eligible for a loan and whether or not she can afford to repay it, consideration has been given to her wage.
In the second situation, your wife could be added as a co-applicant for the mortgage provided her income is taken into account when deciding whether or not the joint loan is appropriate and the borrower’s overall repayment capacity. For a variety of reasons, including the fact that he earns less than the necessary minimum salary and has a bad credit rating, the husband’s mortgage applications are consistently rejected. Occasionally, having more co-applicants can improve your loan application’s chances of being approved. Just remember that this is only an option if the lender decides that your wife’s income, debt-to-income ratio, credit score, and other indicators are sufficient for assessing the joint loan application and setting the Best Home Loan Interest Rate that will be paid on the house loan approved for it.
Who else is able to submit a co-application except the wife?
Co-borrowing mortgage limits and terms are not uniform; rather, they differ from lender to lender. Only a small number of family members, such as parents, siblings, children, spouses, and other blood relatives, are typically permitted to co-apply for a mortgage loan. Regarding the legal ties that may be permitted in accordance with its list of potential co-applicants, the mortgage lender has its own set of limits.
Some mortgage lenders, for instance, might not allow brothers to co-borrow if they don’t want to bear the credit risk associated with co-applicant scenarios due to the potential of future property disputes that could lead to irregularities in the joint mortgage’s prepayment obligations. Because lenders believed that sisters might become a non-repayment risk after getting married, they routinely rejected sisters as co-applicants.