The Perfect Strategy For Home Loan Repayment With A Co-applicant

For a long time, homes have been in the name of a single owner i.e. a single applicant. In India, that means that the name of the breadwinner goes on the door name, registration papers and on the house loan application as well. However, very few people realize that using a family member or your wife as a co-applicant adds a lot of weight to your housing loan application; as far as banks and housing finance organizations in India are concerned. This in turn, also helps with the home loan repayment, if the applicant keeps a few timely strategies in mind:

Home loan repayment strategy 1:

You can always opt for a step-down as a repayment option for a housing loan. It allows you to own a flat or property as a young son or daughter along with your father or mother. In this way, the repayment can be handled by the senior partner till the younger partner starts earning substantially.

Home loan repayment strategy 2:

If you add your wife’s name in the home loan application, you have a greater home loan eligibility criterion, thus allowing you to opt for a bigger home along with it. As your eligibility criteria spikes up, you can either use it to take a better home or to design a home loan package with higher EMIs consequently repaying your loan in a much lesser time. Though it is a common practice to opt for a home under your name as the breadwinner; you can use this feature to your advantage as well while paying for it together,

Home loan repayment strategy 3:

Until recently, this option was not available. Although in the last few months, it has become advantageous to opt for housing loan with your wife’s name as the first applicant. The basic difference here is that the husband is a co-applicant while his wife is authorized as a primary applicant. However, you can lower your interest rates considerably with this change. Do enquire about this option before entering in the details to see if you can avail this benefit. It should be noted though, that this offer can be a time-bound one, making it essential that you capitalize on the same by opting for housing finance at the right time.

There are a few more benefits which you can avail on a case by case basis. If you are taking a joint housing finance with your young brother, for example, then you might want to repay in accelerated repayment program as your respective incomes grow. In this way, it is always wise to enquire about any and all sort of combinations that are available that allow you to fully use that loan to your advantage.