Pros & cons of taking a joint home loan with wife:
While applying for the home loans, the loans can be taken jointly or independently to buy the dream home. The borrower needs to submit the documents independently in the case of the single applicant, while in the case of the joint applicant, the documents of both the applicants need to be submitted. The common loan helps borrowers repay installments together as well as also distribute the loan amount together. While if the property is independently owned, the property is in the name of the single owner; thus, the borrower has to pay the installment of the property alone. As the prices of the property go on gradually increasing, it becomes more & more difficult for the aspirants to buy the owned property. Thus it is advisable to play some tricks & strategies while buying our owned property, and also to avoid paying the rentals for years to go, the borrower should opt for the owned property as it becomes a lifelong asset to the owner.
The joint-owned assets become a joint loan for the borrowers. In this case, if the borrower defaults on the loans, then both the owner as well as the co-owner in the common name may come into the defaulter’s list. If both the husband & wife duo are amongst the active earning members of the family, it is always better recommended to take the loan on joint name, as if a single person out of the couple is unable to opt for the loans then another person can take the additional responsibility of the repayment of the loans, thus creating a win-win situation for both the borrower as well as lender. As per the government policy, the borrower can opt for subsidy in registration of the property as well as opt for lower interest rates against the property due to women as co-owner.
Advantages of taking a joint home loan with wife:
[1] Helps share liability burden:
The joint-owned property is the responsibility of both the owner and the co-owner to share equal liability and responsibility for the installment. When the husband-wife both are earning family members, it is always advisable to jointly own the property. As a joint owner, the couple can enjoy equal benefits & ownership rights for the property. The couple can make their own choices regarding the selection of the property, budget which suits the property, the interior also of both the equal choice. Also, if one of the couples loses his/her job, then also the other co-owner can continue to pay the installments to gain full ownership of the property as well as avoid penalties to be chargeable by the lenders. Also in maintaining a good CIBIL score can help to avail future credit from leading financial institutions.
[2] Helps in jointly benefit of taxes:
The jointly owned property in which the one person as a co-owner who is a female can avail registration benefits and be charged with the lower interest rates to the borrowers. The borrowers under the PMAY[Pradhan Mantri Awas Yojana] can avail higher subsidy benefits for buying a property with one co-owner be female. The Government of India encourages the women aspirants to avail loans in their name and buy properties by a single/dual ownership. Under the PMAY scheme, interest subsidy can be available to Rs.2.67 lakh for buying the owned house. Also, in the case of the Income Tax, the borrower, both the owner & co-owner, can avail of the tax benefits depending upon the contribution of respective individuals in payment of installments.
[3] Helps in increasing the property ownership amongst women aspirants:
As India is a male-dominated country, all the decisions are taken by men. Also, usually, males tend to get a higher share of the property against the females. And the working-class population of the males far outnumber that of the females. Thus there is a vast disparity amongst the wealth owned by the males compared to females. As the workforce’s contribution is increasing that of the females, the aspirants who buy the properties in their name are also growing. As India and the state government are striving hard to increase the ownership of females, the results are encouraging, with women making their contribution in the day-to-day activities and buying the dream homes as well on their names. This gives women a sense of ownership, sense of pride & freedom of choice in case of the right & resettlement.
Cons of taking a joint home loan with wife:
[1] Disputes arising out of the property:
If the couple gets divorced or separated from each other, then disputes may arise in the property, thus leading to problems in ownership & resettlement of the property. If the installments are yet to be paid to the bank, then in case of separation, both the couples may deny paying the installments leading to default & disputes arising out of the owners of the property; also, if both the co-owners may go in the default case.
[2] CIBIL score of both the applicant may get affected:
The borrower’s if they default jointly, then the CIBIL score of both the applicant may get affected, leading to the cancellation of all future credits to the individuals. The loan default can lead to heavy penalties on both the borrowers, thus leading to liability on both the couples.
[3] Loss of ownership by both the applicants in case of dispute:
If the joint owners get separated from each other and thus stop repaying the installments of the house, then irrespective of their contribution into the flat, the borrowers may end up losing the property, and it may become a sealed asset of the bank, leading to both loss of individuals.
Conclusion:
Hence it is either flip side of the coin wherein the borrower can be recommended to buy the property with the joint owner as a wife to reduce the burden of the liability, avail benefits under the schemes for women, and save money. Simultaneously, the life-long healthy relationship and trust are an essential part of joint ownership to enjoy the right and avoid any default continuously.
