Outlook Money
A joint home loan allows two or more people to borrow together. It can increase loan eligibility and tax benefits, but also creates shared responsibility.
Most lenders allow joint home loans with spouses, parents, children and certain siblings. Eligibility depends on relationship, income profile and lender policies.
Combining incomes of co-borrowers improves loan eligibility. This helps applicants qualify for a larger home loan and potentially purchase a better property.
A co-applicant with strong income or credit history can strengthen the application, making it easier to secure home loan approval from lenders.
Co-borrowers who are also property co-owners can separately claim tax deductions on principal repayment and interest, subject to prescribed limits.
All borrowers are responsible for repayment. If one borrower misses EMIs, the credit score of every co-borrower will be negatively affected.
Financial disputes, separation or repayment issues can create complications. One borrower may eventually have to shoulder the entire loan burden.
Before taking a joint home loan, evaluate repayment capacity, choose co-borrowers carefully and understand all responsibilities linked to the loan