The house can be sold only if both the co-owners are ready for it. As both the co-owners can avail the tax benefits so whenever the house will be sold both has to pay tax on the capital gains earned by them. Blog: http://www.gorelations.com/blogs/2559/27037/how-to-add-co-owner-to-your-property Apply For Loan: https://financebuddha.com/home-loan Facebook :https://www.facebook.com/financebuddha Twitter:https://twitter.com/financebuddha
How to add Co-owner to Your Property A co-owner of a property is the individual who shares the ownership with another person. The co-borrower and co-owner are used interchangeably but there is a very thin line which distinguishes the both. A co-applicant of home loan is the one who applies for a joint home loan and liable to repay the loan. It is not a must to be the co-owner of a property if you are a co-applicant of the loan. But a co-owner of a loan should necessarily be a co-applicant. Banks and HFCs always insist the co-applicants to become a co-owner of the property. A coborrower along with the primary borrower is the responsible for paying the EMIs on time. A joint home loan application is more favorable to the lender as both the applicant's income is considered while sanctioning the loan amount. When a co-applicant becomes co-owner, it is beneficial for both the lender and the borrower. The immediate relatives of the primary borrower can become a co-borrower. The relationships which has been approved for a joint home loan is husband & wife, mother & son, father & son, father & unmarried daughter and brother & brother. All these co-borrowers can be co-owners except father & unmarried daughter. In this case, the daughter will be the sole owner of the property. There are many benefits of adding a co-applicant to the home loan. When both the coapplicant’s income is clubbed, a higher loan amount can be applied. When you add a coapplicant who has a good credit history, you may get some relaxation in interest rate too. Adding a female co-applicant can also bring the interest rate down. With the new RBI guidelines, the female applicant gets a subsidized interest rate which is generally 0.5% lower than the general rates. Moreover, when both the applicant will have a regular source of income, they can share the debt burden.