There are several factors that make adding your spouse as a co-applicant an advantageous move.

For most working couples, the normal approach towards a home loan is simple: one salary is earmarked for loan repayment while the other is used for managing the daily expenses. This mindset is also the reason why usually only one spouse applies for a home loan. However, there are several advantages of taking a home loan jointly, which are not apparent at first. Let us examine some of them and their implications as well.



 Repayment capacity

There are several instances where a couple may be about to miss out on a dream home because of a slightly lower income level denies them access to the necessary finance. In such a scenario, clubbing the income of the spouse increases the repayment capacity and therefore, the eligibility amount as well.


Rate revisions

Having a co-applicant also helps to cope with another factor, rising home loan rates. If the interest rates on home loans go up; your total repayment amount also increases to that extent. The only thing in the equation that hasn’t gone up is your income, so your repayment capacity, based on which they calculate the eligibility amount, comes down slightly. However, adding your spouse as a co-applicant can help you to successfully overcome this hurdle as well.


Dual benefits

If the interest rates rise after you have taken the loan, coping with the higher EMI from just one account may prove to be a difficult task. Having a joint applicant and repaying the loan from two accounts can prove quite helpful at such times. Similarly, If the home loan interest rate increases too high and you need to renegotiate a longer tenure instead of paying a higher equated monthly installment or EMI, again the lending institution will take  a more favourable view in terms of granting such an extension if there are two working people repaying the loan.



 Tax benefits


Since both spouses are repaying the loan jointly, the tax benefits will be shared in proportion to their EMI contribution. Often, just one applicant cannot avail the entire tax benefit limit due to investments in other tax saving instruments, etc. so having two spouses helps here as well. So when it comes to having additional flexibility and adjustment while raising funds, having your spouse as a c0-applicant definitely beats facing the financial complications alone.