Getting the home loan approved is one thing and continuing the loan tenure without any hassles is another thing. The house loan interest rate has a key role in the home buying decision with a home loan and continuing the long term without any hassles.
The skyrocketing property prices are making the home buying decision a difficult task for the middle-class strata of the society. They have a steady fortune which is not enough to pay the lump sum amount in one go. But, own home is necessary not only for the self-accomplishment but it is essential to keep your family safe & happy.
Keeping in mind the zooming prices, the government and RBI policies for the home loans are designed so that people can dare to come forward and take the debt.
They have reduced the house loan interest rates to a satisfactory level, increasing the home loan eligible numbers. The minimum limit is set by the government & RBI policies, but the rate of interest is determined by the lenders depending on their profit share and base rates.
It is not necessary that every borrower will have same rate of interest on the loan amount. Your savings habit determines your rates.
We will discuss the five steps in this article, which can help you to get the best interest rate, they are as follows:
Step 1: Let’s start with your expenditure habit. While searching & discussing about home loans you must have come across the term ‘credit score’, right? Credit score reflects your responsibility as a borrower, a good credit score nearing the 900 bar can help the borrower to put forward a claim for lowering the home loan interest rate. The lenders give special emphasis on the score card to move your loan application ahead.
Step 2: The next thing is your loan repayment habits and expenditure habits, which is reflected in your bank statement, which the lenders ask for. The documents your financer asks for, testifies you as a responsible borrower or not. So balanced expenditure and on time repayments, without any defaults makes you a good borrower which can get you low interest rate.
Step 3: A stable job with impressive monthly income reflects your affordability of the home loan EMIs. This makes the lender offer you lower house loan interest rate compared to low income group.
Step 4: Adjustable home loan interest rates are lower than the fixed rates, which reduces the interest cost. Keeping the present market scenario, the borrowers can hope to get lower interest rates in future.
Step 5: The last one is the margin-money; more amounts you pay lesser will be loan amount. It not only registers you in the financer’s good book as a borrower but it will earn you lower interest rate. So squirrel away your money from the beginning of your career, so that you can pay maximum margin money.
Keep the above mentioned points in mind before taking the home loan, because all the borrowers have an eye on the home loan interest rates before taking the loan. Your rate of interest will determine the amount of interest cost you need to shell out for the whole loan tenure. So the childhood habit of savings can keep you in the comfortable side.