421579 SIP myths you must know!

Do you have any plans of buying a property soon? If you have, this is the ideal time to buy since the home loan rates are at their lowest. According to market experts, these low interest rates may continue for another six months or one year.

Compare

Buying a house is one of the biggest financial decisions and one should not rush through the decision-making process. If you are planning to take a home loan, you must compare the deals offered by different banks, housing finance companies – based on parameters like interest rates, foreclosure charges, penalties, etc.

Big impact

What might appear as a small difference on the face of it, might have a big impact when added up over a number of years during the repayment.

Compared with other retail loans, the tenure of home loans is longer – it might stretch up to 30 years. Therefore, interest rates play a key role while selecting a loan.

Even a small difference in interest rates can have an impact on the overall cost. So, the selection of wrong products may put you in financial distress.

Cheapest loans

Amongst the leading banks, Kotak Mahindra Bank is offering one of the cheapest rates starting at 6.65%.

Country’s largest lender, State Bank of India, is offering has kept interest rates between 6.75% and 7.30%, which in Bank of Baroda are between 6.75% and 8.25%.

The private sector majors such as ICICI Bank and HDFC Bank are offering between the bands 6.75% and 7.55% and 6.75% to 7.60% respectively.

Factors at work

While deciding the quantum of loan that an applicant is eligible for, banks use several criteria. Usually, these are the value of the property, the age of the individual, the income of the applicant, the income of the co-applicant/spouse, existing loans if any, creditworthiness (credit score and credit history), etc.