If you and your spouse both are earning good salary then you should choose the equal ownership of the property and should equally divide tax benefits on housing loans. If one partner has a small tax bracket then it would be useful to let the partner with high salary to make a higher contribution towards home loan, which in turn help you in getting better tax benefits. In this way, you can optimize your benefits from the tax exemption on the principal amount and interest which you have paid.
Advantages of taking a joint home loan-
• Banks do not permit a person to borrow when their EMI gets increased to more than 40 per cent-50 per cent of the monthly salary. It in turns ensures that there would be no stress on monthly budget of individual. It means, when you will combine incomes of all joint applicants then it will help in deciding the loan eligibility. It means, you can get better home loan amount and can purchase house of your choice.
• Co-applicants of home loan can get tax rebates under Section 80 C for the repayment of principal amount and under Section 24 for the repayment of the interest amount. It is worthwhile to note that it these rebates are applied for each individual home loan applicant.
• If you and your spouse both are earning similar incomes then you should go for the equal co-ownership of the property which in turn means equal division of the tax benefits.
Advantages of taking a joint home loan-
• Banks do not permit a person to borrow when their EMI gets increased to more than 40 per cent-50 per cent of the monthly salary. It in turns ensures that there would be no stress on monthly budget of individual. It means, when you will combine incomes of all joint applicants then it will help in deciding the loan eligibility. It means, you can get better home loan amount and can purchase house of your choice.
• Co-applicants of home loan can get tax rebates under Section 80 C for the repayment of principal amount and under Section 24 for the repayment of the interest amount. It is worthwhile to note that it these rebates are applied for each individual home loan applicant.
• If you and your spouse both are earning similar incomes then you should go for the equal co-ownership of the property which in turn means equal division of the tax benefits.
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