When purchasing property, an important consideration is whose name to register it in. What happens if you buy a home in a woman’s name in your family?

To increase women’s participation in real estate, the Government of India has introduced home loan benefits for women borrowers. This can also improve the economic status of women and reduce their vulnerability to exploitation. This make real estate a more inviting space for women buyers, urging them to take part in it.

Additional Read: Simple Tips of Home Loans for Women Borrowers

Let us take a glance at the benefits of buying a home in a woman’s name.

Tax exemption and rebate

There is a good possibility that if a property is purchased on a woman’s name, the home loan is also in her name. This is because banks require the loan account to be in the name of the owner. If the property is under a woman’s name, then she is eligible for a tax reduction. If the property bought is rented out then the entire interest paid on the home loan can be claimed as a deduction. If the woman has a separate source of income and she is a joint owner of the house with her spouse, both can claim tax deductions individually.

However, a woman will not be considered an eligible candidate for a home loan by financial institutions if she doesn’t have an income of her own. If a man buys the property in his wife or mother’s name but she does not contribute monetarily to the purchase of that property, the rental income from that property will be treated as his income and will be taxed accordingly. 

Discount on stamp duty

Stamp duty is a tax that is levied on any property purchase and is calculated as a percentage based on the market value or the agreed value of the property, whichever is greater. The stamp duty percentage differs from state to state. State governments in India offer a certain amount of discount to women property buyers or to the joint registration where one of the applicants is a woman.

Additional Read: What is Stamp Duty? How to Calculate Stamp Duty Online?

Discount on home loan interest rate

If the property is purchased in the name of a woman then the home loan interest rate is typically lower. Financial institutions offer different interest rates on home loans when a woman is the first co-applicant or a sole applicant.

When looking for housing loans, there is no better place than Tata Capital. Tata Capital offers easy housing loans at attractive home loan interest rates. We also offer home loan for women. You can check your home loan eligibility and monthly payments with our home loan EMI calculator to be aware of your housing needs. Our home loan calculator can help you get an estimate of the EMI which will help you in sorting out your finances.

With a simple application process, minimal documentation, and quick approvals, securing home loans at Tata Capital is easy. 

So what are you waiting for? Visit us today to know more.

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