The prices of houses have skyrocketed over the years at a rate where an individual’s salary cannot match up for decades. Most people have taken to opt for home loans in order to have the chance of owning property. And to increase the chances of being eligible for home loans, many have also realised the benefits of having a co-borrower.
Who is Eligible?
When applying for a home loan with a co-borrower, the borrower’s spouse is given the first preference. Since couples are more likely to pool in for household expenses, the same can be said for people planning to buy a house of their own where both partners chip in for the home loan Equated Monthly Installments (EMIs).
After the spouse, the next preference is given to the borrower’s son or daughter, or parents. However, the age of the parent is crucial in deciding whether they can be a co-borrower with their children to opt for a home loan.
Who Cannot be a Co-Borrower?
Co-borrowers need to share a strong bond that can lead to the co-borrower helping in paying off the entire loan no matter what the circumstances. Unlike family members, friends and unmarried partners do not share that strong a bond, leading to banks rejecting them as a potential co-borrower. And while partners can get a business loan easily as co-borrowers, a home loan can be hard to get when you opt for co-borrowing.
Tax Benefits that You can Enjoy
While it can be a task to claim tax benefits as co-borrowers of a home loan, those who are also joint property owners and are servicing the loan taken have an automatic claim to the benefits on tax-saving. How much tax benefits one can enjoy depends on the ratio at which you service the loan. This amount can also be different than the stake you have in the property as compared to the joint owner.
With all of these benefits, investing in one of the many spacious Mulund flats for sale wouldn’t just be a faraway dream.