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Owning a home is a dream for many couples. To make this dream come true faster, many decide to use the joint income method when applying for a mortgage (KPR). What exactly is this method? Read on to find out more in the article below.
Definition of Joint Income
Joint income is the process of applying for a mortgage by combining the income of two individuals. The purpose of this combination is for the bank to assess the ability to repay the mortgage as higher. This way, the mortgage application process can proceed smoothly, and the loan limit granted will be larger.
The income combined in a joint income mortgage is typically that of a husband and wife. Combinations with individuals other than a spouse are rare. However, banks are generally open to discussing various schemes for mortgage applications.
Advantages of Joint Income Mortgages
Every method has its own advantages. Here are some benefits of the joint income method:
Increased Chance of Mortgage Approval
The joint income method means that two parties are responsible throughout the mortgage process. This reduces various risks, allowing the bank to feel more confident in approving the loan.
Higher Loan Limit
Combining two incomes will increase the total amount, so the bank is more likely to provide a higher loan limit, giving you more freedom in choosing the home you want to buy.
Tax and Interest Rate Benefits
Some banks offer tax reductions for customers applying for mortgages. The chances of receiving such benefits increase when using the joint income method. Additionally, some banks offer lower and more flexible interest rates. It’s advisable not to rush when applying for a mortgage and to compare offers from different banks to find the best deal.
Requirements for Joint Income Mortgage Application
In general, the requirements for applying for a mortgage using this method are divided into three categories: personal documents, property documents, and agreements with the bank. The personal documents typically include IDs, family cards, payslips, bank statements, etc.
Property documents include copies of the title deed, building permit, sale and purchase agreement, and others. Be sure to check with the bank for the complete list, as each bank may have different requirements.
Who Owns the House from a Joint Income Mortgage?
There are several options to answer this question. The most common choice is for both parties to have equal ownership rights over the house, which means they can inherit it if one of them passes away. If the house is sold, both parties will receive equal profits.
Alternatively, each party can have different ownership shares, which can be mutually agreed upon. This option allows for the property to be sold separately.
Can You Buy a Subsidized House with Joint Income?
The answer is yes, as long as the other requirements, including the maximum income limit, are still met. You can consult with a trusted subsidized housing developer to make your subsidized mortgage application process smoother.
After reading the above explanation, are you interested in buying a house with your partner? Make sure all the requirements are met!
