American Stock Market, US Stock Market, American Share Market

If are going to own a house and fortunately both husband and wife is having independent source of income, you can go for joint home loan.

Benefits of owning house jointly

You can take following benefits by owning your house jointly:
• Will increase loan eligibility and loan amount
• Both joint applicants (co-borrowers) can avail tax benefits under Income Tax Act
• The financial load of repaying the loan amount will be divided between co-borrowers

Essential parameters for joint home loan

Co-borrowers have to qualify following parameters to get home loan jointly and avail tax rebates against repayment of home loan:
Co-borrowers should be co-owners of the property
To avail tax benefits it is required that co-borrowers are co-owners too
Individual co-borrowers should have a proof of income to justify the repayment capacity of the loan.
Shares of loan will be decided upon the repayment capacity of the individual borrower
Banks ensures that the repayment of loan is made in the same ratio as the ratio of borrowings.
If the co-borrower/co-owner does not have any source of income, an agreement should be made on a stamp paper stating that entire repayment of loan will be done by single borrower’s income. In this case, tax benefit can be availed by single co-borrower.
Repayment of loan can be made by 1) Joint bank account of co-borrowers depositing funds in the ration of shares of ownership in American sharemarket2) EMI’s can be divided between both the co-borrowers and each has to submit cheques to the bank against the home loan.
Each borrower should have a copy of ‘borrower certificate’ on Rs100 stamp paper to claim tax rebates. Certificate should mention the shares of ownership and shares of home loan availed by the co-borrowers.
Each of them should take copies of interest and principal repayment certificate from the bank and borrower certificate to claim tax rebates. Individual borrowers can avail tax benefits in the proportion of the shares in the home loan.

In case a co-borrower repay Rs. 2 lac as a part of interest and Rs. 50,000 as a part of principal amount having equal share in borrowing, individual borrower can claim Rs. 1 lac as interest and Rs 25,000 as principal in their respective income tax returns.