Work out a combo deal

Plan the funding for your home before getting married or you may stay in rental accommodation for a very long time.

Updated: Sep 02, 2013, 10:00 AM IST

Mumbai: Plan the funding for your home before getting married or you may stay in rental accommodation for a very long time.

Having your own home and figuring out the funding for it with your potential spouse is the stepping stone to a successful relationship. The issue is when do you start planning your new home? The wedding night is a bad idea, something that only works in bollywood movies and television advertisements. So put your heads together and work out the finances well in advance.

How it works

One salary takes care of the household expenses while the other goes towards the home loan EMI. Also, salary increases at regular intervals enable the couple to prepay part of the loan and reduce tenure.

Combo loans help

There are several instances where a person may miss out on a dream home because of a slightly lower income level denies them access to the necessary finance. In such situations, clubbing the income of your spouse to increase the repayment capacity can bridge the gap.

The flip side

On the other hand, couples who leave this essential decision for ‘afterwards’ and start off in leased accommodation often find themselves in the same condition several years later.

Delays can cost

When a kid is on the way, they need a home of their own more than ever. But guess what, they have two strikes against them. While expenses shoot up drastically, incomes don’t keep up, often reducing or even getting halved.

So which of these scenarios would you like to be in? Obviously the first one, but hey - even if you are already married, there’s still no need to hit the panic button as yet. Just don’t procrastinate anymore.

Expert Speak

Amit Bhatia, director & head, assets and business banking, Deutsche Bank India, points out that if both husband and wife are working, and have a stable income, then we can combine their income to arrive at the maximum loan amount. In case, the customer has any existing loan obligation with low outstanding, it is advised to close the same as it will help in increasing the quantum of loan sanction. The financial institutions consider the existing salary as constant and do not consider future hikes to compute the loan amount eligibility.

DNA/Pooja Vora