Joint Home – Loan is better for the Couple!


Yes, It is inevitably an innate  desire to own a home  by every own and is a requirement too!

While going in for purchase, everyone  thinks that the valuations are on the high side at present and wait for it to slide down. But it never happens. It is an illusion. Some sit on the fence and many being practical decide to go in. Before you decide to buy a home, take the following points into consideration:

  • Decide your budget and the purpose of it. Is it for your basic occupation or for investment purposes?
  • Decide the place of buying based on your need. Properties in Tier II cities and  in outskirts will be more affordable than in the heart of the city for investment purposes.
  • Investment in land and building does not give you a good return in short/medium term..The rent  is paltry  .  But the capital value gain may be appreciable over a period of long time. Maintenance is a must which involves cost.
  • Check your credit score and keep it above 750 (CIBIL). Lenders mostly check this before taking a decision in your favour.
  • The Lender Checks the document of title& EC, with a lawyer and also gets a valuation report from an approved civil engineer at your cost. No encumbrance or  tax arrears should be
  • Calculate your Home loan eligibility and decide the duration of the loan suiting your family’s cash flows and commitments. Your EMIs should be a comfortable one even in trying circumstances. Longer the duration lesser the EMI which is approximately @ Rs 850 per Lakh

Married couples can make their respective spouses as Co-Borrowers to enhance their loan eligibility (if he/she  has income). Both can avail tax benefits under Sec 80 C.

  • Check and avail any Govt. subsidy scheme like PMAY and also take advantage of the tax rebates/incentives under various sections like Sec 80 C.
  • Scan the rates of different FIs and choose one which is with low rate of interest, low processing /document charges and other fees, zero pre-closure penalty etc., Fixed rate of Interest will enable you to plan your commitment.
  • Find out the maximum lending percentage say 90 % or more of the property value.
  • Ready to move in properties are free from GST but Capital gains tax may be applicable when being sold. But if reinvested within a specified period may be exempted.
  • Resale value properties depend on so many factors like location, environment, accessibility, guideline value, amenities. Etc.,
  • Ensure that the property is not likely to be taken over by the government or their agencies for acquisition for their projects in the near future. Ensure that the property is an  approved one.
  • Keep your tax returns for three years and advance tax  , paid up to date.
  • Your total loan liabilities should not be more than 60 % of your cash flows normally.
  • As big property deals are likely to catch the attention of the Tax authorities, keep your records straight. Make transaction through cheques and other authorized modes of payments.
  • Take adequate insurance for the house property and the assets in the house.
  • Also plan a budget for the interiors and basic furniture articles.
  • If you can include your spouse with income, then your loan eligibility will be more and EMI less..
  • When the couple decide to part, then  the each one’s liability has to be  ascertained  with the consent of the Bank or go in for a pre- closure by selling the house or by other means. Amongst the couple, one can buy it paying the dues to the other. The bank may evaluate the repayment capacity of the  borrower again. Consultation with bank and legal opinion will  be better.


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