A property registered in a woman’s name is eligible for various benefits including stamp duty waivers, lower home loan interest rates, etc. Many lenders are now offering customized home loans for women at concessional home loan rates and preferred loan tenure. No wonder women borrowers have surged recently.
Here are some of the benefits of buying a house in a woman’s name:
Discount on Stamp Duty Charges
Stamp duty is levied on the purchase or transfer of a property, and calculated as a percentage of the property value, at the time of the registration; a stamp duty charge varies from state to state and depends on the property type.
All properties that are registered or co-registered in the woman’s name are eligible for the stamp duty waivers. The stamp duty charged levied on the women is lower than their male counterparts; case in point: In Delhi, the percentage of stamp duty charged on properties registered in a woman’s name is 4%, while it is 6% if co-registered with a male.
Since a stamp duty adds up to the property cost, it is favorable to assess the full charge before finalizing the property purchase.
Assured Tax Exemptions and Rebates
To incentivize women buyers, specific tax exemptions and rebates on a home loan are given to women borrowers, based on the property ownership share.
In case of joint ownership between husband and wife, you can claim a tax deduction of Rs. 1.5 lakh per year for the interest paid to service the housing loan, if the property is self-occupied. Moreover, if both the spouses are salaried individuals, they can claim tax deductions separately.
As for husbands, registering property in their wife’s name can bring down their overall wealth tax liability. Any rental income from such a property will be considered in the husband’s net income and taxed accordingly.
Lower Home loan Interest Rates
In comparison to male borrowers, women borrowers are provided home loans at lower home loan interest rates for buying a house. Given the satisfactory track record of women borrowers’ repayment history, lenders are offering them a higher housing loan amount, at preferred home loan rates and tenure.
Furthermore, lenders are providing specialized home loan for women, in a move to expand their lending portfolio and encourage more women to invest in realty with easy home loans. If you are deliberating a home loan, you can easily check your home loan eligibility by using a home loan calculator online.
In fact, government initiatives like the PMAY scheme offer special interest subsidies and tax rebates to women borrowers. If you are an eligible beneficiary for a home loan, apply to obtain a home loan online and benefit from concessional interest rates.
To Sum Up
All in all, buying a house in a woman’s name can save you money on the property as well as the borrowing cost while you also get several tax exemptions and rebates on the EMI payment of your housing loan.
Always use a home loan EMI calculator to estimate the EMI amount for a stipulated loan amount before applying for a home loan.