There are many benefits of taking a home loan together with your life partner. This gives you a home loan of a higher amount, which allows you to buy a bigger house. It also helps a lot in tax savings. Husband and wife can claim different deductions on home loans.

Loan Deduction Claim: It is important to understand many things before taking a home loan. A home loan is a responsibility that will remain on you for many years. A house bought with a home loan can be helpful in your wealth creation. The house also gives you financial security. Home loan also helps you in tax savings. If you take this loan together with your life partner (wife/husband), then you will be able to do more tax savings. This also opens the way to take more loans.

One or more people can take out a home loan together. Usually, the husband and wife take a home loan together. It has many benefits.

Higher home loan amount: Taking a joint home loan with your life partner opens the way to take more loans. The reason for this is that the bank or NBFC decides the maximum loan amount based on the income of both husband and wife. By taking out a bigger home loan, you can buy a bigger house.

Financial responsibility on both: In a joint home loan, both husband and wife contribute to the EMI. This puts the responsibility of repaying the loan on both. This also maintains financial discipline.

More tax savings: Both husband and wife can claim deduction on home loan. This doubles the tax benefits.

Additional benefits to women borrowers: Many banks give 0.05-0.10 percent concession in interest rate if the woman is the primary borrower. In some states, stamp duty exemption is also given if the house is registered in the name of the woman. This reduces the total purchase cost of the property.

Tax benefits under sections 80C and 24B

If the home loan is taken jointly, then both husband and wife can claim separate tax deductions.

• Each co-borrower can claim a deduction of Rs 1.5 lakh on the payment of the principal amount.
• This deduction is available on both self-occupied and rented properties.
• Deduction on interest amount is available only when the loan is taken from a recognized financial institution.
• If the property is being used as a personal residence, then both co-borrowers can claim a deduction of up to Rs 2 lakh on interest payments.
• If the house is given on rent, then there is no limit on the amount to claim deduction on interest. But the loss under the ‘Income from House Property’ head can be set off with other income up to a maximum of Rs 2 lakh in every financial year.

In this way, if both husband and wife claim deductions separately, a total deduction of up to Rs 7 lakh (Rs 1.5 lakh per person plus Rs 2 lakh) can be claimed in a financial year.