Property rates make it hard for many to afford their own homes. Fortunately, a Home Loan can help you afford to purchase the house or flat you’ve set your heart on. While you can apply for a Home Loan on your own, you can also opt to apply with a co-applicant. To learn more about applying for a Home Loan with a co-applicant, continue reading.
Who is a co-applicant in Home Loan?
A co-applicant in Home Loan means a person who applies along with you as a borrower of the loan amount. Applying with a co-applicant helps enhance your eligibility for a Home Loan. When you apply alongside a co-applicant, the bank or financial institution in question can be further assured of your repayment capabilities. Thus, you can enjoy a larger loan amount and higher flexibility on your Home Loan. Plus, in today's day and age, when the cost of housing is increasing, co-applicants can be of great help.
Who can be co-applicant for Home Loan?
As far as Home Loan co-applicant eligibility criteria are concerned, banks have fixed policies in place. You can choose members of your family to co-apply for a Home Loan. When such members act as co-applicant for a Home Loan, their income is computed when arriving at your Home Loan eligibility. Members of the family usually refer to relatives bound by blood or marriage and not distant relatives and friends. The following are a few examples of qualifying applicant and co-applicant relationships:
- Father and Son: If the applicant is the only son, then both the applicants' incomes are considered. The property must be in both their names jointly. However, the father can only act as a co-applicant and not the primary borrower.
- Unmarried Daughter and Father: Unmarried daughters can apply for a Home Loan with their father as a co-applicant. However, the father's income is not considered to avoid legal complications post marriage.
- Brothers and Sisters: A brother can act as a co-applicant for a Home Loan if he is staying with the main applicant and intends to do so in the new property. However, a brother, acting as the main applicant, cannot choose his sister as a co-applicant. Furthermore, a female applicant cannot choose her sister as a co-applicant.
- Husband and Wife: A husband can apply for a Home Loan with his wife as a co-applicant. If his wife is an earning member, her income is taken into consideration, and they can enjoy various tax benefits, as well.
Minors cannot be considered as co-applicants for a Home Loan.
Home Loan at HDFC Bank
HDFC Bank realises the importance of owning your own home. To that end, HDFC Bank offers Home Loans at attractive interest rates with flexible repayment options. At HDFC Bank, you can opt for a joint Home Loan with ease and realise your dream of owning a house.
To apply for an HDFC Bank Home Loan, click here.
Want to know more about Home Loan foreclosure? Click here to read more!
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances
