Planning to buy a home? For many of us buying a home is a lifetime investment. Everybody tries to have the best of the size, locality, amenities etc as per his eligibility. Blog: https://amritaagarwal.tumblr.com/post/170673888988/what-is-the-role-of-a-co-applicant-in-a-home-loan Apply For Loan: https://financebuddha.com/home-loan Facebook :https://www.facebook.com/financebuddha Twitter:https://twitter.com/financebuddha
A blood relative or an immediate family member can be a co-borrower of a home loan. Here are the six couples who can borrow a home loan together 1. Husband and wife 2. Father and son 3. Father and unmarried daughter 4. Mother and unmarried daughter 5. Brother and brother 6. Son and mother ( in case of father is no more) What Is The Role Of Co-Applicant? A co-applicant plays a vital role in a home loan. Adding a co-applicant is always more welcomed by the lender too. Here is what a co-applicant has to do with a home loan. Co-applicant increases the borrowing capacity When a co-applicant is added, the income of the co-applicant is also considered. Both of the applicant’s combined income report works as a tool to increase the home loan eligibility. So if one was eligible to have a 2BHK flat, now he can easily take a bigger and better 3BHK flat easily. Female co-applicant decreases the interest rate The Indian Government has given subsidy to the female home loan borrower. If a person takes a loan keeping his wife or daughter as a co-applicant then he can enjoy the subsidized rate of interest on home loan.
Co-applicants share the burden Availing a home loan is not a difficult one but servicing the same smoothly till the end of the tenure is a big task. If you are the sole borrower, you will have to take the whole responsibility of repaying the loan on time. In unfortunate cases like job loss or ill health if the cash flow is not adequate, then paying the EMI may become a big burden and one may default. So, there is a co-borrower, he/she can share the burden. Co-applicant repays the loan if the primary borrower defaults In unfortunate cases like death or disability of the primary borrower, a co-applicant pays the EMI and saves the house from being auctioned by the lender. A coapplicant becomes accountable for paying the rest of the amount to the lender. The Considerable Factors While Adding A Co-Applicant 1. It is best if the co-applicant of the loan is has a regular income. Having a regular income, the co-applicant will be able to continue the repayment process in the case if the main borrower defaults. If the main borrower defaults, the co-borrower becomes legally liable to repay the loan. 2 .When two persons apply for a home loan jointly, the age of the elder person is counted to fix the tenure of the loan. Besides the main borrower, the co-applicant should also fall below the debt-to-income ratio limit. 3. In the case of a single child, one can take his/her father as a co-applicant and both of their income will be accounted as the total income. The loan eligibility will be determined by clubbing both of their incomes together. 4. If two brothers apply for a loan jointly, then they must live together in present property. Even in future too, they must determine to live together in that same property which they are going to purchase.