Getting the stamp of approval for a home loan to get started in property investment may seem like a distant dream. If you plan to apply for a joint property loan, this might be the key to making your dreams a reality with your joint property purchase. If you co-apply or co-invest with a partner (such as your spouse or a relative), you can increase the likelihood of home loan approval and share the costs of home loan repayments.
Let’s explore why an increasing number of South Africans are opting to co-apply for a home loan, enabling them to enter the property market sooner and more easily. The IGrow Home Loans bond origination team has assisted many joint home loan applicants in getting home loan application approval. Joint home loans are a tried and tested means of achieving your property investment dreams!
How Joint home loans work and who qualifies to co-apply for one?
The answer is that a joint home loan is when two people co-sign for a single home loan application. This is a common occurrence among married/life partners, relatives or business partners who wish to invest together.
What are the joint home loan benefits?
According to IGrow Home Loans, “both parties are assessed during the application phase. This improves your affordability rating and chance of being approved for a home loan.” – IGrow Home Loans bond origination team
The joint property loan application process
A joint property loan application is similar to a standard one. When you co-apply, both applicants’ credit scores are checked, their incomes are vetted, and the state of their debt is assessed. Remember, both parties are responsible for the bond repayment fees related to the property.
IGrow’s bond originators recommend that when you enter into a joint property loan arrangement, it is wise to lay everything out regarding the responsibilities of the co-applicants. A legal co-ownership agreement is a good idea to avoid any future disputes between the parties.
Joint home loans carry the benefits of combined income and split expenses
One of the main benefits of a joint home loan is that your purchasing power goes up. This is because two incomes are considered. In essence, you can apply for a bigger home loan. You’re then able to invest in more valuable property, which can have better long-term results.
Your bond repayment expenses are halved. This decreases the financial strain placed on each co-applicant. In this way, you can grow your wealth without overspending on your personal account.
“One of the biggest reasons people opt for a joint bond is that it makes property ownership more accessible. By combining your incomes, you can qualify for a larger loan and, therefore, afford a better property than you might on your own. Plus, sharing the financial responsibility can make the monthly payments and associated costs more manageable.” (Source)
Shared risk and shared rewards as co-applicants
Co-applying for a joint property loan doesn’t mean that you merely save money. It means you lower the risks associated with your property purchase. If one co-applicant has a lapse in income, the other co-applicant might be able to cover the bond repayment fees. So, you don’t default on your home loan repayments or lose the property.
Make sure that you trust your joint property loan partner. Both parties’ credit scores are taken into account over your home loan term period. This is normally 20 to 30 years, in some single-applicant home loan application processes. A joint home loan can be the pathway to creating a booming property portfolio.
Conclusion
Joint property loans offer potential investors an opportunity to own property faster. It is more affordable with co-applicants splitting costs tied to the property. Combined income, reduced home loan repayments and shared responsibility are related perks. Joint home loans, therefore, offer a wonderful solution to securing your financial freedom!
Investing in property is less stressful when you’re not doing it completely alone. Embark on your joint home loan application journey and build your wealth, together, with less risk.
Your property investment dreams are within reach! Contact IGrow’s Home Loans, and set the ball rolling on your joint home loan.
