Is it Possible to Add a Co-applicant for My Home Loan Who Isn’t a Co-owner in the property?

Updated on: 18 Jan 2024 // 4 min read // Home Loans
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One of the biggest financial decisions of your life is when you apply for a Home Loan to purchase a home. Living in your own home is nothing less than a dream come true,but due to soaring real estate prices across various Indian cities, it might remain a dream for a large number of prospective homeowners who want to make an outright purchase. You may havesaved bit by bit to be able to purchase your own house,but with the ever-increasing prices of the residential real estate, you end up playing a catching-up game. It can get frustrating at times,butwith the help of a Home Loan, you can actualise the dream of owning your own house instantly.

Home Loans have become one of the most popular financial products of the present times as a large number of young professionals are doing great at their work and now want to buy their own home,and additionally, the prices of the residential real estate have made Home Loans the only viable alternative to purchase a property. In the wake of rising demand for Home Loans, a large number of financial institutions are offering this product to their customers. Being a secured offering, the rate of interest against Home Loans are very competitive at present and start at 8.50% p.a. When you Avail a Home Loan Offer, you have to mortgage the purchased property with the lender, who will create a charge over it. This charge is going to be registered until you repay the entire loan amount with interest, the repayment tenure for a Home Loan can extend up to 30 years.

With the rapid assimilation of technological advancements in the financial services sector, most lenders now offer you the option to apply for a Home Loan through online channels such as online marketplaces or company website. If your profile meets their requirements, their representative will get back to you in order to take the process further. Due to various legal and technical issues being involved in the purchase of a property, the loan processing time can run up to 15 days o more.

HDFC Home Loan Offer

Home Loan Eligibility and Co-applicants

When you apply for a Home Loan, the lenders calculate your eligibility based on your income tax returns, banking,and net-worth statement. Sometimes, it might happen that the eligibility amount that the lender has calculated based on your profile is not sufficient for your requirements. In such a situation, the most viable alternative that you have is to add a co-applicant for your Home Loan application.

A co-applicant could be your family member only and must be a tax paying individual of over 21 years of age. Adding a co-applicant for your Home Loan is a wise decision under most circumstances as it significantly enhances your eligibility amount and also improves the chances of your application being approved. There might be some restrictions laid out by the lenders regarding who all can be added as the co-applicant(s) to your application, so you need to confirm the same before proceeding ahead.

Is it Possible to Add a Co-applicant for My Home Loan Who Isn’t the Co-owner?

This is a question that may bother you if you are planning to apply for a housing loan with a co-applicant. Here you have to understand that being a co-applicant and being a co-owner are two different things altogether. Just remember that a co-owner must be a co-applicant for a Home Loan,but co-applicant need not be the co-owner. So, the answer to your question is – Yes, you can add a co-applicant for your Home Loan who is not the co-owner of the property,but there are some things that you must take into consideration while getting a co-applicant:

  • Even if the co-applicant is not going to be the co-owner, they credit score will be factored in by the lender while processing your application and calculating your eligibility for a Home Loan.
  • When you are getting a co-applicant on-board to increase your Home Loan eligibility, you must make sure that they have good credit score and credit history.
  • The tax benefits offered on Home Loan repayments will only be available to homeowners,i.e., co-owners,not co-applicants.
  • Even if the co-applicants are not the co-owners, they are liable for the repayment of EMIs (Equated Monthly Instalments) on time to the lender otherwise their credit score will also be affected negatively.
  • Most lenders allow an only specific set of relativesto be co-applicants such as father-son, mother-son, and husband-wife. They might not accept brother-sister or father-daughter combination as co-applicants. So, you must make the inquiries before filing an application.

Availing a Home Loan is a wise decision when it comes to arranging money to purchase your home. You must conduct thorough research and negotiate hard with the lender in order to get the lowest interest rates and highest eligibility amounts.