Table of Content
It is quite normal that people look for a lower rate of interest. As a borrower, you can check home loan interest rates of different lenders and then select one. The repayment duration of home loans is directly linked to the risk of lending for financial institutions and the time value for the money extended as advance.
Preferably, a credit score of 750 and above is deemed ideal to secure competitive interest rates from lenders. Similarly, the interest rate for a 55-year old salaried applicant would be more as he/ she would retire from the job soon. Shubham Finance has five years of experience in providing excellent financial aid for Mumbai-based individuals.
Get free quotes of top banks
It is best to opt for this type of Housing Loan interest rate when current rates are expected to increase. This way, you avail of a Home Loan at the lowest possible interest rate. However, it is not suitable to go for a fixed Home Loan interest rate when there is a possibility of a rate decrease in the future as this increases your payable interest. However, lenders usually allow you to change from a fixed rate to a floating rate during the repayment period. A mortgage loan is a high-value credit, and it is possible to avail up to 80% LTV against a property.
There are many factors that affect Housing Loan interest rate, including external market conditions, such as the repo rate and inflation. Some of the other factors that affect Home Loan interest are in your control. These depend on your eligibility for the loan and aspects such as your income, credit score, and more.
Tell us About your Loan requirements
Of the two types of interest rates on a Home Loan in India, floating rates are more popular as they are lower than fixed rates at the onset. Generally, floating interest rates are 1-2.5% lower than fixed interest rates. A floating Loan interest rate is variable and changes during the tenor based on market fluctuations and benchmark rates, which means your interest outflow keeps changing. Typically, lenders account for the change in the interest outflow by keeping the EMIs the same but changing the tenor to match the difference.
With Bajaj Housing Finance, or in fact any other lender, applicants can avail of the best loan rates by meeting the housing loan eligibility criteria and showcasing a strong credit profile. While fixed rate home loans help you plan repayment more easily, they may not allow you to take the benefit of lower interest rates due to market conditions. However, floating rates can also increase during your tenor. One of the main advantages of a floating interest rate is that it comes with zero charges on foreclosure or part-prepayment of your loan.
Factors affecting mortgage loan interest rate
Home loans are offered at both fixed and floating interest rates. Fixed rate loans come with the same rate of interest throughout the tenure. Whereas floating rate loans will see changes in the interest rate as and when changes take place in the market. Even with rate changes, floating rate home loans have lesser interest obligations for borrowers than what could be the case with fixed rate loans. You can get it converted into a floating rate and save on the interest.
However, high-value loans as risky on a lender’s part, as monthly instalments are higher in that case. Therefore, to compensate for the risk of borrowing, they may charge a high mortgage loan interest rate when loan amount is substantial. Hence, it is necessary to assess the exact credit requirement before applying to ensure competitive interest rates. Mortgage loan interest rate are typically low owing to their secured nature. As a result, borrowers enjoy comfortable repayment and low cost of borrowing. Several factors influence mortgage loan interest rates, read on to know more about these.
Usually, a mortgage loan accompanies a long tenor, and you can choose a term as per your repayment capacity. Nonetheless, on selecting a shorter tenor for high loan value, lenders may consider you a risky borrower. Although any immovable asset is eligible for a loan against property, its type determines the mortgage loan interest rates. For instance, lenders offer different interest rates for residential and commercial properties. Besides, the resale value of a property, its location, also influences this interest rate. It is the best online platform that helps you to compare home loan interest rates in Mumbai, check your home loan eligibility & apply online for home loan in Mumbai just at a single click.
It is linked to a lender's internal benchmark or an external benchmark, such as the RBI repo rate. In other words, the interest rate increases or decreases in tandem with the linked benchmark rate. Thus, under favourable market conditions, a reduced benchmark rate will lower the interest amount payable. Check out the table below for the current home loan rateson offer, subject to your credit score.
There is no requirement to call the customer care because i used to resolve the issue in app. But the interest rates are very high since my builder has a tied up with HDFC and i have no other option so that i went with them. They do have a part payment and pre-closure facility without having any additional charges. To repay affordably over the tenor of your home loan, you can put certain strategies into action. These will help you lower your interest rate or help you reduce your overall interest payment.
Apart from these, the LTV and tenor you choose are also important factors that affect the Home Loan interest rate offered to you. Take a look at important ones that can help you save more during repayment. A low interest rate home loan can be the best option to apply for. A high score of 750+ positions you as a reliable borrower.
The base rate is the standard lending rate that applies to all retail loans. The markup is added to the base rate to arrive at the effective rate. In 2016, the RBI mandated a new system to replace the base rate one – marginal cost of funds based lending rate .
No comments:
Post a Comment