Advantages of a Joint Home Loan

4. Lower Interest Rates for Women Co-Applicants

Many banks offer discounted interest rates (around 0.05–0.1% lower) if a woman is a primary or co-applicant.

Major Banks Home Loan Perks for Women

• SBI: 5 BPS
• HDFC : 5 BPS
• Union Bank: 5 BPS
• Bank of India : 10 -15 BPS

*data as per Bank Bazaar as on 9 May 2025

Some states and union territories also reduce the stamp duty if teh co applicant is a woman, for example in Delhi. So, involving your wife, mother, or daughter as a co-borrower can reduce your overall cost of borrowing.

5. Better Approval Odds

Higher combined income and multiple credit profiles make you appear less risky to lenders. As a result, joint home loan applicants often get quicker approvals, flexible tenures, and sometimes even lower processing fees.

Disadvantages of a Joint Home Loan

While the benefits are real, it’s also important to understand the risks and challenges of taking a joint mortgage:

1. Equal Liability

All co-borrowers are equally responsible for repayment. If one party defaults, the others must cover the full EMI.

2. Credit Score Impact

Missed or delayed payments affect everyone’s credit scores, not just the defaulter’s.

3. Legal Disputes

Without proper agreements on ownership and repayment shares, conflicts can arise, especially in the case of separation, divorce, or disputes between siblings.

4. Limited Tax Benefits for Non-Earning Co-Applicants

To claim tax deductions, a co-applicant must also be a co-owner and a contributor to EMI payments. If your co-applicant is not earning (e.g., a homemaker or retired parent), they cannot claim the home loan co applicant tax benefit.

Who Can Apply for a Joint Home Loan in India?

Eligible co-applicants include:

• Spouse

• Parents and children

• Siblings (in some banks)

• Unmarried partners (less commonly accepted)

Important: Co-borrowers must typically be close family members, and at least one co-applicant must be a co-owner of the property.

Documents Required to Apply for a Joint Home Loan

To apply for a joint mortgage, you’ll generally need:

• PAN and Aadhaar cards

• Income proof for all applicants (salary slips, IT returns)

• Property documents

• Bank statements (last 6 months)

• Passport-sized photographs

Quick Tips Before You Apply

• Plan ownership shares and EMI contributions clearly

• Have a legal agreement in place, especially for unmarried co-applicants or siblings

• Check if your lender allows the type of co-applicant combination you're planning

• Use a home loan eligibility calculator to estimate your joint eligibility

A joint home loan can be a powerful financial tool, it improves your eligibility, spreads the EMI load, and unlocks generous tax benefits. But it also requires trust, clarity, and careful planning between co-applicants.

If you’re planning to buy a home and have a trusted co-borrower, it’s definitely worth exploring this option. Just be sure to understand both the advantages and responsibilities before signing on the dotted line.