You may have often heard of new home buyers registering their property in the names of their wives. While this is obviously an act of empowerment, it also comes with many advantages that you can enjoy especially if you are planning to get a home loan. Apart from providing your partner with a valuable asset registered in her name, here are some more advantages of buying the property on behalf of a woman.
Home loan benefits:
When we search for a home loan, the biggest thing to remember is the rate of interest. If your partner is a working woman, she can take advantage of a home loan and also enjoy exclusive home loan benefits for women. For women borrowers, most banks have a lower rate of interest.
For example, the interest rate for working women on a home loan may be about 8.55 percent, while it is 8.60 percent for their male counterparts. When a woman is a co-applicant, this lower percentage may also be redeemed. Therefore, it is very beneficial to those who wish to take a home loan, to do so by registering the property in the name of their partner.
Lower interest rates:
Many banks provide lower interest rates for women applicants. A lower rate makes a great impact on Monthly Instalments (EMIs) and offers significant savings over the loan period.
Women benefit as co-borrowers:
Women have the opportunity to apply as co-borrowers with their partners. The couple’s combined income means higher eligibility for the loan and greater flexibility in choosing a suitable home for their family. In addition, women also enjoy a tax deduction on home loan repayments, like their male partners with a maximum deduction allowed in principal as well as interest.
Lower stamp duty:
The government is encouraging homeownership for women as well. In many state governments, home loan benefits for women include lower stamp duty charges of 1-2%. Though 1–2% may seem like a small amount, the amount saved is very significant, considering the overall cost of the property and comparing 1-2% of the same. This will encourage new home buyers towards property.
Women today have a clear pathway to homeownership and with supportive Family, banks, and government schemes on their side, they can work their way to their dream home with ease.