Buying a house this festive season? Top reasons for not opting for a joint home loan

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home loan can lead to legal complexities, making it essential to have clear documentation in place. “Additionally, joint loans limit borrowing flexibility until the loan is repaid, which may affect individual financial goals," added Gupta The joint home loans have their disadvantage for both the applicants. "When one applicant voluntarily or involuntarily decides to move out of the repayment potential (that is due to the job loss).

The partner who has no mainstream income is obligated to stay as a co-applicant to repay the loan till its tenure; and, on the other hand, the partner who pays the EMI in full cannot claim the complete benefits on income tax," said Dr. Subhashree Natarajan, Professor and Dean, School of Business and School of Economics, RV University. Owning a house was a necessity to many and an investment to a few sections, in India; and was considered wise when it was funded through a Home Loan.

However, Gen Z considers home loans differently. "For Gen Z, home loan is a liability that limits them to geographical boundaries, erodes the opportunity to actively invest and multiply their wealth, fixed commitments cause stress especially with income streams being unstable," said Dr. Subhashree Natarajan As per Section 26 of the Income Tax Act, in case of property jointly owned the joint owners shall be treated as owners of their share in the property and will be taxed separately for such share.