Want to Save Big on Your Home Loan? Make Your Wife a Co-Applicant—Here's Why It's a Smart Move

If you're planning to buy your dream home with a home loan, here’s a valuable tip that could save you lakhs—make your wife a co-applicant on the loan. Not only can this move ease the loan approval process, but it also brings significant financial benefits, including major tax savings and interest subsidies.

In today’s world, taking a home loan is not just a necessity—it’s often the most practical way to turn homeownership dreams into reality. With rising real estate prices, a home loan helps bridge the gap between your savings and the cost of your ideal house. But what if you could make this journey even more financially rewarding?

Let’s explore how including your spouse as a co-applicant can make a big difference.

1. Double the Tax Benefits

One of the biggest advantages of a joint home loan is the potential to double your tax savings. When both husband and wife are co-applicants and co-owners of the property, each can claim a deduction on the principal repayment under Section 80C and on the interest paid under Section 24(b) of the Income Tax Act.

• Under Section 80C, each co-applicant can claim up to ₹1.5 lakh per annum on the principal amount.

• Under Section 24(b), each can claim up to ₹2 lakh annually on the interest payment.

This means a couple can together claim deductions of up to ₹7 lakh in a year, helping reduce their taxable income significantly.

2. Access to Lower Interest Rates for Women

Under government schemes like the Pradhan Mantri Awas Yojana (PMAY), women homebuyers are eligible for interest subsidies if they are the co-owners or co-applicants of the home loan. This makes your loan not only more affordable but also encourages women’s participation in property ownership.

In many cases, banks and financial institutions offer slightly lower interest rates for women borrowers—typically 0.05% lower than standard rates. While this may seem like a small margin, it translates into substantial savings over the loan tenure.

3. Increased Loan Eligibility

When two people apply for a home loan jointly, their combined incomes are considered. This improves the loan eligibility and allows you to borrow a higher amount, which can be particularly helpful if you’re eyeing a property in a premium location or looking for a bigger space.

Additionally, if your wife is employed and has a good credit score, it strengthens your case in the eyes of the lender.

4. Easier Loan Approval and Faster Processing

Having a co-applicant can improve your loan profile. With joint responsibility for repayment, lenders are more confident about approving the loan. This leads to quicker approvals and smoother processing, especially if both applicants have stable incomes and clean credit histories.

5. Empowering Women Through Property Ownership

By making your wife a co-owner and co-applicant, you also contribute to her financial empowerment. It ensures a sense of security, especially in the long term, and aligns with the government’s broader vision of encouraging women’s participation in economic and property decisions.

Conclusion

Opting for a joint home loan with your spouse isn’t just a smart financial move—it’s a step toward greater savings, shared responsibility, and a more secure future. From tax deductions and interest subsidies to enhanced loan eligibility and reduced EMIs, the benefits are too significant to ignore.

So, if you’re planning to buy a house anytime soon, consider bringing your partner on board—not just in life, but on your home loan too. It might just be the key to unlocking your dream home with added peace of mind and financial ease.