Cheapest Home Loans In India - Buying a Home

How to Get the Lowest Interest Rate on Home Loans?

Apart from the enforced interest rate cuts by the banks, there are other ways through which the borrower can get a home loan on lower interest rate:

Avail a home loan jointly with your wife and make her the primary applicant of the home loan. Most of the loan provider institutions offer home loan to women on an interest rate that is less by 0.5% of the general interest rate of the same loan.

One can also opt for a balance transfer facility and switch to another bank that provides a lower rate of interest if the current bank or financial institution is charging a higher interest rate. In such a fierce competition, banks prefer to retain their customers - especially the ones who make repayments on time and have a good credit report. We at mymoneykarma help you in transferring your home loan to a different financer with favorable interest rates.

You could also apply for a home loan through mymoneykarma! We offer the best, lowest interest rates (sourced from across different banks); as well as a seamless, hassle-free process.

Factors that Affect Home Loan Interest Rates

Credit Score - Your credit score is one of the most critical factors that affect the home loan interest rates. The banks check the credit scores of every borrower of a home loan to assess his/her creditworthiness. The credit score is determined from your credit report which includes the credit history of your loans and credit card repayments.

Down Payment - A substantial down payment leads to a lower interest rate. A borrower who pays a considerable amount as down payment and opts for the remaining payment through monthly installments is generally considered a low-risk borrower by the lender.

Loan Tenure - The loan tenure is the duration of the loan by which the borrower has to repay the loan. A shorter loan term means lower interest rates and lesser costs, but higher monthly payments. A more extended mandate will result in higher interest payments but lower monthly payments. You can use mymoney's home loan calculator to plan your tenure.

Types of Interest Rate - Interest rates are of two basic types: Fixed and Floating. Fixed interest rates don't change over time. Floating interest rate varies periodically over the loan term. The banks have their MCLR rate to calculate the interest rate for home loans.

Now, with the interest rate cuts and consequently easy EMI payments, buying a dream home is surely possible.

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