Are you looking for the cheapest home loan? Find out about the best deals and what to keep in mind
Many people regard the festive seasons as auspicious for spending large amounts of money or meeting crucial life goals. To capture the biggest pie in increased credit demand, mortgage lenders are offering attractive concessions on interest rates and / or processing fees during the holiday season.
As these concessions can result in considerable savings on the overall cost of credit for a home loan, potential home loan borrowers sitting on the fence may consider availing a home loan during the holiday season. It might also be a good time to buy your dream home using a home loan, as home loans are currently available at low interest rates over 15 years, which, combined with low prices. stable housing and attractive holiday offers from developers can turn out to be a bargain for potential buyers.
However, there are a few important things to keep in mind before opting for a home loan.
âMany mortgage lenders offer lower interest rates to loan applicants who already have loan or deposit accounts with them. Therefore, those who are considering getting home loans during the holiday season should contact banks and NBFCs with which they already hold deposits or have used loans, âsays Ratan Chaudhary, Head of Home Loans, Paisabazaar.com .
Borrowers should visit online financial markets to compare various home loan deals available from a wide range of lenders based on the applicant’s credit rating, monthly income, employment profile, profile. employer, etc.
âPotential mortgage borrowers should also compare processing fees and available tenure periods while comparing various mortgage loan options. The processing fees can significantly increase the overall cost of credit for the home loan, while the length of the loan would influence the affordability of the EMI and the overall interest charges for the borrower. For example, opting for a longer term would result in lower IMEs but higher interest charges, while the reverse will be true for those who opt for a shorter term, âreports Chaudhary.
Mortgage seekers should also remember that lenders generally prefer to lend to those with full IME obligations, including the new home loan, at less than 50% of their monthly income. Therefore, home loan applicants should use online EMI calculators to find out their optimal EMI after considering their EMI accessibility and inevitable financial goals and then choose their loan term accordingly.
The cheapest mortgage interest rates currently offered by major banks and HFCs: