A home loan is a need of every couple but while availing it you should consider some important points. In a similar manner, you can avail a joint home loan rather than the normal one that will provide you multiple benefits but with some restrictions. Here I am sharing some pros and cons of joint home loan. Check them out and choose wisely.
Pros of Joint Home Loan:
Here are some most important points that describe why you should take a joint home loan.
Great Loan Amount
Loan amount plays a crucial role in home loans and it is also an important part in a joint home loan. But in case of a joint home loan, you can expect a higher loan amount as compared to normal home loans. This is due to the income source of both partners. So be wise while taking a joint home loan and choose the one that provides you better facilities and the required amount.
Benefits of Taxes
Benefits of taxes you can avail in the case of the joint home loan as taxes will be divided into two and you will get benefits under section 80C. But before applying for a joint home loan you should consult with your loan provider for all the tax benefits you may get.
Interest Rate
Plenty of banks and lenders provides a home loan with lower interest rates for women. So, you can make your wife a primary borrower and can take the loan being a secondary borrower. In this case, you will have to pay lower interest rates and you can save lots of money.
Cons of Joint Home Loan:
Here are some important points that may lay you in trouble while availing a joint home loan.
Credit Score
The credit score is a major concern in the loans and it becomes more important in case of joint home loan. Because if you skip any EMI or unable to pay the loan on time then the credit score of both person will lower down. Credit score plays a vital role in everyone’s life as a lower credit score will lay you in trouble while availing any loan in the future.
In Case of Separation
In this case, the charge of ownership may lead you in dispute. Most of the couple who filed divorce can’t agree on one condition. In this case, the property may lend into disputed one and in some cases, they will file a case to grab the ownership.
In Case of Death
This is also a major concern that if your partner dies then you have to pay the rest of the EMIs. If you have a good income source then it will be easier to maintain the loan otherwise you will face lots of troubles.