There are many benefits of Joint Home Loan, but some risks are also associated with it. We have told here that what are the important things to keep in mind before applying for Joint Home Loan.
Joint Home Loan: Many a times home loam is not easily approved and there is a problem. For such people, a joint home loan can be a big relief. If you take a loan jointly with another person, then it has many benefits. One advantage is that it reduces the burden of repaying the loan on you. You can buy a big house with your spouse. In addition, the government offers a discount on the registration fee. However, along with the benefits, there are also some risks associated with it, which are important to know. Let us know which risks are important to keep in mind while taking a joint home loan.
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credit score can be bad
In a joint home loan, if your partner refuses to pay his or her share, it can affect the credit score. According to experts, most of the default payments happen with co-applicants. Apart from this, when you take a joint home loan, the credit limit of both of you gets exhausted. It can be risky in case of an emergency or when taking an education loan for your child.
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What happens in case of divorce or death
Suppose a person takes a joint home loan with his partner and wants to separate it later due to some reason, then in such a situation he may be in trouble. Experts say that after a divorce, if one of the spouses stops paying the EMI, then the burden of paying it falls on the other applicant. Note that the applicant will pay the EMI without getting the ownership of the entire property. Also, the inability to repay the loan can create legal problems for both the borrowers. Hence, it is always suggested to consult experts before taking a joint home loan. Similarly, if one of the spouses dies, the entire responsibility of repaying the loan falls on the other.
right of ownership
In case of a joint loan, the ownership of the house is divided equally and it does not matter who has paid the EMI. Also, when there is more than one owner, it can be difficult to sell a property. Unless both the owners agree to sell, it cannot be sold.
(Article – Sanjeev Sinha)
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