Advantages of Taking a Home Loan in Your Wife's Name

There are no two ways to the fact that real estate is super expensive today. However, by just choosing to buy a property in your wife’s name, you can save a considerable amount of money.

For instance, Delhi, Uttar Pradesh, Punjab, and Haryana are some of the main Indian states in which women buyers get an exemption on the taxes paid by them.

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The following are some of the benefits that a women buyer can get over male buyers:

Home Loan Interest Rate

Some banks offer lower home interest rates to women. For instance, State Bank of India is offering an interest rate of 8.35% to women and 8.40 to others under Hamara Ghar plan.  While the difference of 0.05% may not seem much, when considered from the long-term perspective (as home loans can have tenures as long as 10-20 years) it can amount to a lot.

Stamp Duty and Tax Benefits

Women also usually get a concession on the stamp duty, which is about 1% to 2%. So, if you are buying a house worth 50 lakhs, you can expect to save about Rs. 50,000 to Rs. 1 lakh.

Since women get tax benefits just like men, which is tax deduction of Rs. 2 lakhs on the interest payment, and Rs. 1.5 lakhs on the principal amount, when they take a joint home loan with their husbands, they get combined tax benefits.

So, as you can see, buying a home in your wife’s name has many advantages. Other than the benefits given above, the government also launches special schemes for women from time to time that you can check out.