Things to know before deciding to get a joint house loan
Last updated: 19 Aug 2025
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When applying for a #loan, if your application alone isn't approved, another option that can help your loan application go smoothly is a joint loan. This allows financial institutions to determine whether the borrower is able to repay the loan.
Understanding the meaning of #jointloan
Joint loan means applying for a loan with at least one person, but not more than three, under the same contract. The joint borrowers can be anyone, but must be family members, such as parents, siblings, or married couples. With a joint loan, each co-borrower is considered to share half of the debt, or the debt is divided equally. Therefore, if one of the co-borrowers is unable to repay the loan, the other co-borrower in the contract will be responsible for the entire loan.
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Advantages of joint loan
Request for a higher loan amount
Let's say you earn 20,000 baht and want to #buy a house priced at 3,500,000 baht. However, the loan amount and salary base do not meet the financial institution's criteria. Having a co-borrower will help increase your salary base and increase your loan limit.
Improving your chances of loan approval.
Even if your financial history is healthy and you repay your debts on time, it may not be enough if your salary and loan limit are not balanced or appropriate. Financial institutions may perceive you as insufficient in your ability to repay your debts. Co-borrowing will help increase your creditworthiness in terms of repayment ability, leading to faster approval.
Helps to ease your debt burden.
A co-borrowing will reduce your debt burden by half, eliminating the burden of debt from being the sole borrower. This will help you ease the burden throughout the loan period.
Expense Flexibility. At the very least, a co-borrowing allows you to allocate your expenses, using the money you would have previously used to pay off debt to benefit other expenses.
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Think carefully before deciding to co-borrow.
Everything has its advantages, but there are also consequences. A co-borrowing is like dividing your rights equally. Without proper discussion and agreement, there can be consequences. Before deciding to co-borrow a home loan or loan, consider these factors.
Are you ready to share the debt with someone else?
A joint loan involves co-borrowers sharing a lump sum of debt. This means that if one co-borrower experiences financial difficulties, the other co-borrower must be willing to help and repay the debt. Ultimately, the debt may become your sole responsibility.
Tax deductions are split in half.
Buying a home can be used for tax deductions by deducting interest from the home loan. If you co-borrow, the interest is split in half, and only each person can claim half. For example, if you can deduct 100,000 baht from your tax, you can only claim 50,000 baht.
Agree on who owns the home.
In a joint loan, there are two possible scenarios where the owner is named: 1. Only one co-borrower owns the home, while the other co-borrower has no ownership in the home. 2. All co-borrowers are the owners, meaning all co-borrowers have equal rights. However, any documents related to the home must be agreed upon by all borrowers or approved by a joint vote.
The right is passed to your heirs if the co-borrower dies.
If your co-borrower dies The heir or executor associated with the deceased will take over the repayment and acquire ownership of the house. However, the borrower must notify the bank, as otherwise, only the borrower will be responsible for repaying the debt.
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Unable to continue the joint loan: How to proceed?
If ultimately, neither party can continue the joint loan, both co-borrowers should immediately contact the bank to inform them of their desire to remove their names from the joint loan contract. The bank will assess their ability to continue paying the debt.
However, if the bank refuses to approve the removal of their names from the joint loan because their repayment assessment is unsuccessful, those wishing to take over the home loan may need to refinance or sell the home and enter into an agreement to divide the assets.
While joint loans have advantages and increase the chances of a successful loan application, home purchases are long-term debt that borrowers should carefully consider, make a decision, and be confident that they are ready to proceed together to avoid financial problems down the road. For those who have already agreed to a joint loan, be careful about paying monthly installments and ensure they are consistently and on time. Both you and the co-borrower, because each party's information will be included in the credit report.
___________________________________________
Source of this article: NCB
Understanding the meaning of #jointloan
Joint loan means applying for a loan with at least one person, but not more than three, under the same contract. The joint borrowers can be anyone, but must be family members, such as parents, siblings, or married couples. With a joint loan, each co-borrower is considered to share half of the debt, or the debt is divided equally. Therefore, if one of the co-borrowers is unable to repay the loan, the other co-borrower in the contract will be responsible for the entire loan.
___________________________________________
Advantages of joint loan
Request for a higher loan amount
Let's say you earn 20,000 baht and want to #buy a house priced at 3,500,000 baht. However, the loan amount and salary base do not meet the financial institution's criteria. Having a co-borrower will help increase your salary base and increase your loan limit.
Improving your chances of loan approval.
Even if your financial history is healthy and you repay your debts on time, it may not be enough if your salary and loan limit are not balanced or appropriate. Financial institutions may perceive you as insufficient in your ability to repay your debts. Co-borrowing will help increase your creditworthiness in terms of repayment ability, leading to faster approval.
Helps to ease your debt burden.
A co-borrowing will reduce your debt burden by half, eliminating the burden of debt from being the sole borrower. This will help you ease the burden throughout the loan period.
Expense Flexibility. At the very least, a co-borrowing allows you to allocate your expenses, using the money you would have previously used to pay off debt to benefit other expenses.
___________________________________________
Think carefully before deciding to co-borrow.
Everything has its advantages, but there are also consequences. A co-borrowing is like dividing your rights equally. Without proper discussion and agreement, there can be consequences. Before deciding to co-borrow a home loan or loan, consider these factors.
Are you ready to share the debt with someone else?
A joint loan involves co-borrowers sharing a lump sum of debt. This means that if one co-borrower experiences financial difficulties, the other co-borrower must be willing to help and repay the debt. Ultimately, the debt may become your sole responsibility.
Tax deductions are split in half.
Buying a home can be used for tax deductions by deducting interest from the home loan. If you co-borrow, the interest is split in half, and only each person can claim half. For example, if you can deduct 100,000 baht from your tax, you can only claim 50,000 baht.
Agree on who owns the home.
In a joint loan, there are two possible scenarios where the owner is named: 1. Only one co-borrower owns the home, while the other co-borrower has no ownership in the home. 2. All co-borrowers are the owners, meaning all co-borrowers have equal rights. However, any documents related to the home must be agreed upon by all borrowers or approved by a joint vote.
The right is passed to your heirs if the co-borrower dies.
If your co-borrower dies The heir or executor associated with the deceased will take over the repayment and acquire ownership of the house. However, the borrower must notify the bank, as otherwise, only the borrower will be responsible for repaying the debt.
___________________________________________
Unable to continue the joint loan: How to proceed?
If ultimately, neither party can continue the joint loan, both co-borrowers should immediately contact the bank to inform them of their desire to remove their names from the joint loan contract. The bank will assess their ability to continue paying the debt.
However, if the bank refuses to approve the removal of their names from the joint loan because their repayment assessment is unsuccessful, those wishing to take over the home loan may need to refinance or sell the home and enter into an agreement to divide the assets.
While joint loans have advantages and increase the chances of a successful loan application, home purchases are long-term debt that borrowers should carefully consider, make a decision, and be confident that they are ready to proceed together to avoid financial problems down the road. For those who have already agreed to a joint loan, be careful about paying monthly installments and ensure they are consistently and on time. Both you and the co-borrower, because each party's information will be included in the credit report.
___________________________________________
Source of this article: NCB
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