Regarding Joint Home Loan Repayment

Q & A Forum › Category: Home Loans & Credit › Regarding Joint Home Loan Repayment

Srujan.Kumar asked 9 years ago

Hello, Me and my brother planning to take a Home Loan. We are maintaining individual accounts and No joint account. The banker said that through ECS the EMI will be deducted from only my brothers account. Is this the right way for repayment and claiming tax benefits? OR should the deduction happen separately from both of our bank accounts? We are salaried persons. and both are co-owners of the property.

3 Answers

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Sreekanth Staff answered 9 years ago

Hi, Advisable to open a joint bank account and let the EMIs get deducted from that account. This is better in case both of you are going to claim tax rebate. Is your brother primary applicant?

Srujan.Kumar replied 9 years ago

Yes, My brother is Primary Applicant.

As per your advise, we will both open a joint account from the bank and every month either me or my brother will transfer money to that joint account and amount will be deducted .

Please correct me if am wrong.. and also let us know any suggestions from your side

Srujan.Kumar replied 9 years ago

Hello,
Planning to take a Home loan of 20 lacs from xxxxx bank and tenure is 10yrs.
My brother is a Primary Applicant & me as a co applicant.
1. For next 5yrs my brother only will pay the whole EMI, In this case my brother can avail entire tax benefits??

2. For remaining 5 yrs, i will only pay the whole the EMI, can i avail entire tax benefits? and also let us know that the banks will agree when i switch the ECS process from my brothers account to my account.

We are salaried persons. and both are co-owners of the property.

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Sreekanth Staff answered 9 years ago

Hi, Yes, you may do so. Kindly note that both of you can claim tax rebate in the ratio of 50 : 50 (by default). Kindly read : https://www.relakhs.com/joint-home-loan-eligibility-rules-income-tax-benefits/

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Sreekanth Staff answered 9 years ago

Hi, Both of you may have to enter into an agreement regarding who will claim 100% tax benefits for the said period. Some employers (if salaried) do ask for this that other co-borrower is not going to claim tax benefit.... Regarding ECS change request..kindly check with your banker/lender..