Why applying for loan solo might be a good idea

Dev Singhraha

Relocation Expert

Buying a property, adding a co-owner and co-borrower for a home loan might be good for sharing the burden of the loan and also, push your financial boundaries for buying a house a little more. Being able to buy a bigger house with the help your joint loan seems like a good way. Though, it might not be such a good idea to opt for a loan jointly in the long run. Want to know why? So

Here are some pointers that will make you understand why taking the home loan individually can be beneficial.

Applying for a joint home loan and being the co-owner is not a bad move, but conflicts may arise in future regarding the ownership issues. So taking loan individually can be a positive move in such case.
If the first owner fails to make the repayment of the loan, the burden falls on the second co-owner. It might also lead to the jeopardising the co-ownership of the second owner.
When you and your spouse both apply for a loan together, you both are under debt. So, if in future you want to apply for another loan it might disturb the financial position of your family or maybe restrict you take another loan.
Both the loan borrowers are held equally responsible if there is any failure to make the loan repayment.

Although, it is a better idea to take home loan individually so that your spouse does not have any loan burden or debt for any financial situation which may arise in future. Also, think of it as your spouse saving the money instead of paying EMI, for a rainy day.

Henceforth, whether you are opting for a joint home loan or an individual one think about both positive and negative aspects in both the cases.

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