As more and more women become financially savvy and independent, it has become common for couples to share the responsibility of running the family’s finances. Buying a house and getting a Home Loan for your dream home with your wife has more than one benefit, especially if you are moving forward with your plans.
Let’s talk about the pros and cons of getting a home loan and property with your wife after taking into consideration her sbi credit score:
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Joint loan: Lower rates on home loans for women
When you and your wife both apply for a home loan together, most lenders will offer a lower interest rate, usually by up to 5 basis points (0.05 percent) on the standard interest rate.
Remember that the wife must be the owner or co-owner of the property and the primary or co-applicant of the Home Loan in order to get this special rate.
Registering a property with someone else: Changes to the fees for stamp duty
In addition to the slightly lower Home Loan interest rate applicable for those having a high sbi home loan cibil score, many people who buy a home with a partner don’t know about this less well-known deduction under section 80C of the Income Tax Act and the discount for women. The stamp duty and registration fees paid when buying the property can be used as deductions, but the total amount can’t be more than Rs.1.5 lakhs for that financial year. Most states lower the stamp duty fees by about 1% to 2% if the property is owned by a woman alone or with another woman.
Remember that you can only claim this deduction in the same year that you paid for the expenses. Also, you won’t be able to take advantage of this deduction until both the building and your ownership of the property are done.
More benefits from tax breaks: Sections 80C and 24:
First of all, keep in mind that you and your wife, who has a good sbi credit score, can only get tax breaks on a home loan if your wife is both a co-borrower and a co-owner of the house. If she is just a co-borrower and not a co-owner, she won’t be able to get tax breaks, even if they pay the EMIs together. The couple can claim deductions for both the principal and interest payments on their home loan, based on the interest rate that is in effect, under sections 80C and 24. But the two people must own the property together and pay their share of the EMI payments.
Also, since many homebuyers have good sbi home loan cibil score, they take out a home loan to buy a property that is still being built and won’t be finished for a while, but the EMI payments on the home loan start as soon as the loan is taken out, these borrowers can still get a tax break under Section 24b for the interest they paid during the pre-construction period at the standard interest rate for home loans. You can do this for up to five years (in 5 equal instalments). But keep in mind that even with this, the most you can claim is still Rs 2 lakh per year, which includes interest payments for both the pre-construction and post-construction periods.
When it comes to paying off the principal, you can deduct up to Rs. 1.5 lakhs per year. For the interest component, you can deduct up to Rs. 2 lakhs per year. Couples, especially those with high sbi credit score, can each claim the deductions that correspond to how much of the property they own. Don’t forget that the total amount of claims cannot be more than the total amount of principal paid back during that year.
Conditions under which the wife can join the application
A wife must be either the sole owner of the property or a co-owner. The wife can be the main applicant or a co-applicant for the home loan if she is the owner or co-owner of the property. Even if she doesn’t have a job, she may still be able to be a co-applicant if she owns the property with the main applicant.
The wife’s income,sbi home loan cibil score, and earnings are taken into account when deciding if someone can get a loan and how much they can borrow.
Your wife can also be a co-applicant on the home loan if she has a job and her income was taken into account when figuring out if the joint loan was eligible and if you could pay it back. Many times, the husband’s application for a home loan is turned down for reasons like not making enough money or having a low sbi credit score. If this is the case, adding your working wife as a co-applicant can make it more likely that the loan will be approved. Keep in mind, though, that this is only possible if the lender finds your wife’s sbi home loan cibil score, income, debt-to-income ratio, etc., to be satisfactory when evaluating the joint loan application and deciding the interest rate on the Home Loan.
Who else besides a wife can be a co-applicant?
The rules for co-applying for a home loan vary from lender to lender, and there is no one hard and fast rule. Most of the time, lenders will only accept a small number of family members as co-applicants on a home loan. These include father, son, mother, daughter, spouse, sister, and brother. All of this, though, depends on the home loan lender’s own rules and regulations about who can be a co-applicant based on their list of valid relationships.
For example, a few home loan lenders who don’t want to take credit risk on co-applicants, especially those with poor sbi home loan cibil score, might not let brothers become co-borrowers because there might be a property dispute in the future that could cause a joint home loan to be paid back late or not at all.
Also, some people who give out home loans may not let sisters be co-applicants because they think the sisters might not pay back the loan after they get married.
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