I had bought a flat 3 years back with the home loan when I was unmarried. Now, I am married and want to add my wife’s name as a co-owner, so she can get a benefit of home loan principal/interest in taxes as a co-applicant. But as I said, it’s mortgaged, how this can be done?
Is your spouse a co-borrower of home loan?
No, she is not co-borrower yet. Also, I am planning to switch home loan from Bajaj to SBI. While doing so, I wanted to add her as co-applicant but wanted to know, if I can add her as co-owner with the current lender or it’s easier with the new lender while home loan transfer.
You have to inform your current Lender / prospective Lender that you are planning to gift a certain ownership share in the property and get NoC from them. And also about making her as a co-borrower to the home loan.
If they agree then you can execute a Gift Deed by mentioning the ownership share (by default its 50%, if you do not mention the share ratio). If 50% is the ratio then both of you can claim tax benefits in the ratio of 50:50 .
I believe that it may be better/convenient to you if you complete these formalities with your existing Lender and then balance transfer the home loan to new lender.
Kindly read :
- Joint Home Loan : Eligibility rules & Income Tax Benefits
- Options for adding Spouse’s name as co-owner of the Property
- 5 ways of transferring your Immovable (or) Real Estate Property
- Got a Gift? Find out, if it is Taxable or Tax-free?
- Can a Mortgaged property be Gifted, Willed or Inherited?
- Income Tax Deductions List FY 2019-20 | List of important Income Tax Exemptions for AY 2020-21