June 2023

The Indian government has implemented several measures to encourage women to participate in the real estate market by providing them with numerous advantages when it comes to home loans. This article aims to shed light on these benefits and guide readers on how to leverage them effectively.
With recent changes in rules and regulations, the government now offers various incentives for wives to purchase residential properties in Thane either in their sole name or as joint owners. These incentives make it more appealing and financially rewarding for women buyers to enter the property market.
Unfortunately, many individuals undermine these advantages by acquiring properties in their own names, thereby missing out on potential benefits. Buying a property is not only a significant life goal but also crucial for a couple's happiness. Therefore, it is important to recognize the advantages of owning property in the name of your spouse, particularly for women. By purchasing a house under a woman's name, you can enjoy the benefits of being a property owner. Let's explore some of the reasons why buying a property in Thane under a woman's name is advantageous:

1. Cheaper Home Loans

When applying for a home loan, the interest rate plays a crucial role. The dream of owning a residential property in Thane may seem unattainable due to the high interest rates. However, housing finance institutions offer women borrowers interest rates that are typically 0.5% to 5% lower compared to men. Some housing finance organizations have even developed special loan schemes tailored to women's needs and income. Even a slight reduction of 0.5% to 5% can have a significant impact when dealing with large loan amounts. Therefore, there is a strong rationale and benefit in registering a property under a woman's name.
Most major Indian banks provide housing loans at reduced interest rates for women, especially when purchasing residential properties in Thane. Presently, the interest rate for salaried women is 8.60%, whereas it is 8.75% for others. Though the difference may seem minor initially, it can make a substantial difference when dealing with substantial loan amounts. It is advisable to consult the bank for detailed information on these interest rates and any additional rules that may apply before obtaining the loan.

2. Stamp Duty Discounts

In many states across the country, including Thane, partial stamp duty exemptions are available when purchasing residential properties in the name of a spouse. This is a powerful means of empowering women, as it ensures that they have legal rights to their own homes, safeguarding them against domestic abuse and mistreatment.
Similar benefits can be obtained when gifting the property to the spouse. In cases where it is not possible to register the property solely in the wife's name, joint registration is an option. Certain jurisdictions even offer a low discount rate of 1% for joint registration. Additionally, both the husband and the wife may be eligible for tax benefits on the home loan.

3. Tax Exemptions & Rebates

When a house is acquired in the wife's name, the home loan should also be in her name. This is usually a requirement under banking laws and allows for a deduction of up to Rs. 1.5 lakh in interest per year. Moreover, if the residential property in Thane is rented out, the wife may be able to deduct the total interest paid on the home loan.
Women buyers opting to purchase a property are eligible for a range of tax benefits and exemptions, including:

• If the property is self-occupied, the deduction for interest paid each year is limited to Rs. 1.5 lakh.
• If the house is rented out, the entire interest on the mortgage can be deducted from the net rental value.

4. Explore Women-Friendly Schemes

Recognizing the potential of female home buyers, banks have introduced home loan packages specifically tailored to them. As an informed buyer, it is crucial to gather information about the offerings from different banks to compare and select the best option.
These products typically have less stringent eligibility criteria and offer interest rates approximately 0.15% lower than standard rates. While the difference may seem insignificant initially, the savings over a 30-year loan tenure can amount to over 1.25 million. Interest subsidies under the Credit-Linked Subsidy Scheme (CLSS) range from 2.35 lakhs to 2.67 lakhs, depending on the economic category.

5. Additional Tax Benefits

Here's how you can reduce your tax burden:

• A residential property registered in the wife's name cannot be attached to cover any business obligations or losses incurred by the husband.
• If both spouses have home loans, joint ownership can be advantageous as each can claim a tax deduction for the interest paid on the loan.
• If the husband already possesses significant assets, registering the house in the wife's name can help reduce the overall tax liability.

Conclusion

Buying a residential property in Thane under a woman's name offers several advantages and is considered a financially wise decision. The lower interest rates, stamp duty discounts, tax exemptions, and specialized schemes for women make it an attractive proposition for both personal and financial reasons.
In light of these benefits, it is advisable to explore the option of purchasing a property under a woman's name and leverage the opportunities provided by the government and financial institutions. So, go ahead and start your search for your dream home, keeping in mind the advantages of registering it in your wife's name.

Also read: Important Considerations for Investing in 2 BHK Flats in Thane

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