Wednesday, 13 February 2019

Co-Borrowers The Best Way To Enhance Your Home Loan Eligibility




With the rising prices of residential projects, many find difficulties to buy a home on their own. Home loans at cheap rates is a great bliss for many who dream of owning a new home. But there comes the major issue, home loan eligibility. Adding a co-borrower is considered as the fastest way to enhance one’s home loan eligibility.

Who can be your co-borrower?
In the point of view of the lender, the most accepted co-borrowers are the borrower’s spouse, sons or daughters, and also the parents. When considering the parent of the borrower as the co-borrower, the lender will take into account the remaining earning life of the co-borrower.

Generally, brothers and sisters of the home loan applicant are not accepted as a co-borrower by the lender. Friends, relatives, unmarried couples etc. are not eligible to be joint borrower for a home loan, from a financial point of view, these relationships are not considered to be strong.

Tax benefits
The co-borrower of a home loan can claim tax benefits if he is the co-owner of the property and actually servicing the home loan.

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