Credit · 4 min read
Home Loan with a Homemaker
as Co-Applicant
A homemaker without income can be a co-owner and co-applicant. It will not raise your loan amount, but it can lower costs and protect the family.
Ravinder Pal Singh Ubeja ·
A homemaker can be a co-owner and co-applicant on a home loan. Without income, she does not increase the amount the bank will lend, but co-ownership can bring lower costs and makes her a legal owner of the family home.
Co-applicant versus co-owner
Lenders usually require every co-owner of the property to be a co-applicant on the loan. A co-applicant who is not an owner is also possible, but co-ownership is what gives the homemaker a legal share in the house.
What it does not do
Lenders calculate eligibility from income. A co-applicant with no income does not increase the loan amount. To borrow more, you need a co-applicant who earns, or a smaller loan.
What it can do
- Lower rate. Several lenders offer a small concession when a woman is the primary applicant or a co-owner.
- Lower stamp duty. Some states charge less stamp duty or registration fee when a woman is an owner. Check the current rate for Chhattisgarh with the registrar before deciding how to register.
- Security for the family. As a legal owner, she is protected if anything happens to the earning member. Pair the loan with term cover sized to clear it.
Tax
Home loan deductions can be claimed only by someone who is both an owner and a borrower, and who actually pays towards the EMI. A homemaker without taxable income gets no benefit from them, so the earning co-owner usually claims the full amount the law allows for their share.