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A Home Loan is considered a once-in-a-lifetime opportunity for many people. That is why it would help to maximise your potential loan amount. The best to go about is to opt for a joint Home Loan. Let's find out what is a joint Home Loan and how you can improve your chances of getting a higher Home Loan amount.

What is a Joint Home Loan and What is a Co-Applicant in Home Loan?

A joint Home Loan is one that you can take along with another applicant or a co-applicant. A co-applicant is simply an additional applicant who is just as involved in the underwriting and approval process of the same Home Loan. When you take a loan with a co-applicant, it is deemed as a Joint Home Loan.

A co-applicant may be named as the secondary applicant on the joint Home Loan but may share the same loan repayment responsibilities and benefits that go with a Home Loan. Co-applicant may or may not be joint owner of the property. However, a joint owner has necessary to be a co applicant even if he / she is not having any income (e.g., In case of housewife). If joint owner is not having any income, then eligible loan amount would be calculated solely based on income of main applicant.

Having a co-applicant on your Home Loan can also increase your chances of getting the loan approved. Furthermore, it also helps you procure a higher loan amount to buy the house of your dreams. However, co-applicant must be your close relative.

Benefits of Having a Co-Applicant in Home Loan

Having explained what a joint Home Loan and the definition of a co-applicant is, let's take a look at a few benefits of having a co-applicant on your Home Loan.

1. The bank considers the income of both applicants.

When you apply for a Home Loan, the bank considers various factors that can affect your eligibility. This includes your income, outgoing expenses, credit scores , and so on. While you may be eligible for the loan, you may not get a higher loan amount as the sole applicant. But when you apply for a Home Loan jointly with another applicant, the bank also considers their income. A higher income typically results in a higher loan eligibility amount, enabling you to buy a better property without compromising.

2. A joint Home Loan reduces your loan burden by half.

Another advantage of joint home loan is that your loan burden is reduced considerably. You and your co-applicant can devise a strategy that distributes the loan repayment equally. This way, if either of you is faced with unpredictable circumstances leading to a loss of income, the other can ensure that EMIs are paid on time. Doing this ensures you never default on your EMI payment.

Conclusion

Now that you know what a co-applicant is in a Home Loan, you should consider applying with one. A co-applicant reduces your loan burden and shares financial responsibility.

Also Read - 7 Step-guide to Applying for a Home Loan

So, are you looking for a Home Loan? Apply now with Bank of Baroda!