Buying a house together is one of the biggest financial steps a couple can take. Choosing a joint home loan rather than two separate loans multiplies the tax relief, widens loan eligibility, and shares every rupee of repayment. Use this guide to see how the strategy works and how the home loan procedure changes when two borrowers apply instead of one.
Gold Rate
08 Aug 2025
Why opt for a joint home loan?
Higher sanction amount
The lender counts both salaries, so you qualify for a larger loan or a better-located flat. If one salary is irregular, the second income still reassures the credit team.
Lower interest for women co-owners
Many lenders shave 0.05–0.10 percentage points off if a woman is the first applicant. That small margin trims the EMI over twenty years and comes at no extra effort during the home loan procedure.
Shared EMI load
Two bank accounts can service the monthly instalment. If one partner faces a temporary cash crunch, the other can cover the gap without a missed payment.
Twin tax shields
The Income Tax Act treats each co-borrower separately. You both claim deductions on the same property, effectively doubling the ceiling.
Section-wise tax breaks
| Section | Limit per borrower | How it applies in a joint home loan |
| 80C | Rs. 1.5 lakh on principal + stamp duty | Each partner claims up to the full limit, provided both names appear on the repayment schedule. |
| 24(b) | Rs. 2 lakh on interest (self-occupied) | Again, each partner can claim up to Rs. 2 lakh. If the property is let out, you may deduct unlimited interest but can set off only Rs. 2 lakh against other income each year. |
| 80EEA | Rs. 1.5 lakh extra interest (conditions apply) | Available only on affordable homes sanctioned before 31 Mar 2022. If one co-borrower already owns property, neither partner can use this section. |
Put simply, a couple can enjoy up to Rs. 7 lakh of annual deduction: Rs. 1.5 lakh + Rs. 2 lakh each. Over a 20-year tenure, the tax thus saved eases the real cost of the house by several lakhs.
Worked example
Let us assume a couple, Kiran and Meera, take a joint home loan of Rs. 70 lakh at 8 percent for 20 years.
EMI ≈ Rs. 58,600 a month
Year-1 principal ≈ Rs. 1 lakh (half each)
Year-1 interest ≈ Rs. 5.94 lakh (split equally)
| Deduction | Kiran | Meera | Pair |
| Principal (80C) | Rs. 1 lakh (capped at Rs. 1.5 lakh) | Rs. 1 lakh | Rs. 2 lakh |
| Interest (24b) | Rs. 2 lakh (capped) | Rs. 2 lakh | Rs. 4 lakh |
| Total | Rs. 3 lakh | Rs. 3 lakh | Rs. 6 lakh |
At a 20 percent slab, the couple saves about Rs. 1.2 lakh in tax in the very first year. An online calculator lets you tweak rate, tenure, and split to see your own benefit.
Steps in the home loan procedure when you borrow together
- Step 1: Confirm co-ownership
Put both names on the sale agreement. The tax office denies joint deductions if only one spouse owns the title.
- Step 2: Choose the first applicant wisely
Make the higher-credit-score partner the primary borrower for a smoother sanction and, if applicable, the woman borrower for a lower rate.
- Step 3: Submit income proof from both partners
Upload salary slips or IT returns for each applicant. The lender’s portal merges the data but shows both incomes in the sanction letter.
- Step 4: Open a joint bank account for EMIs
Route the monthly debit from a shared account so both of you can demonstrate contribution. The tax rule allows deduction only on amounts actually repaid by each borrower.
- Step 5: Collect separate interest certificates every March
Ask the lender for an annual statement that breaks the principal–interest share for each name. This document is your evidence at tax-filing time.
The entire home loan procedure rarely takes more than a fortnight now, thanks to video KYC and digital signatures, but both co-applicants must be available for e-verification.
Tips to maximise savings
- Stay within the Rs. 45 lakh stamp-duty mark if you plan to use Section 80EEA.
- Pre-pay principal in equal parts so neither partner loses the 80C benefit.
- Opt for the old tax regime if your joint deductions exceed the new-regime rebate threshold; check the result with an income tax calculator before the financial year starts.
- Keep insurance in proportion to each partner’s loan share to avoid disputes over claim payouts.
- Running every scenario through an income tax calculator once a year helps you decide whether to ramp up pre-payments or redirect surplus cash to other investments.
Common mistakes to avoid
- Claiming the full Rs. 2 lakh interest each when only one spouse paid most of the EMI. The tax office can demand proof of contribution.
- Forgetting to register the property in both names. Co-borrowing alone does not grant co-ownership.
- Shifting to the new tax regime without checking the lost home loan procedure deductions; many couples find the old slabs cheaper after factoring in their twin shields.
Bottom line
A well-planned joint home loan lets Indian couples turn a single deduction into a double prize: lower tax and a smoother EMI. You share repayment, widen eligibility, and claim up to Rs. 7 lakh in annual relief—all while navigating a home loan procedure that is no harder than a solo application. Use an income tax calculator to test your numbers, keep paperwork tidy, and enjoy the twin rewards of a new address and a lighter tax bill year after year.
