Your home is a big ticket purchase. If you’re purchasing your property with a handful of savings that is literally impossible. Property rates are sky high and borrowing a suitable finance has become important. The best way to finance your dream home would be taking a suitable home loan. Home loans are offered by banks and financial companies across the nation. These loans are offered at attractive interest rates and vary slightly from bank to bank and firm-to-firm. So choose the best home loan deal and fulfill your dream of owning a house in your favorite city, place or area in India.
While looking for housing finance the first step in the process would be estimating your personal worth and eligibility for a home Loan. Once that hurdle is crossed over then starts the journey of repayments of the loan. So here a few points to understand to ensure that you get the best housing loan deal.
Of all the factors, interest rates are the prime thing to decide your housing loan. Today, there leading non-banking finance companies who offer housing loans with interest rates as low as 8.70 to 9% with a mere processing fee of around 1.25% based on case-to-case. These loans are offered in fixed and floating interest rates form.
Principal in EMI
The principal and interest rate are part of your home loan monthly installment. Ideally, your monthly installment comprises of around 45 to 50% of your monthly income. Where the interest is a much bigger component, they come with loan tenure to get repaid.
Ensure that you always read the term and conditions carefully before getting into any form of contract as well as take an insurance cover immediately on the property. Many banks and finance companies upsell the product along with your best home loan deal to keep your haven secure from unfortunate incidences like earthquake, landslide, fire, storm or burglary.
Your credit score plays an important role in deciding your housing loan eligibility. Experts say you should always maintain a good credit score by paying dues on your existing debts on time. This way you give bank and NBFCs assurance that you’re consistent payee and don’t default on any form of loan payments. Besides some other parameters would be your occupation, job or business stability, income source, spouse or parents income, the number of dependents, existing debts, etc.
One of the ways to crack best home loan deal would be comparing loans online. Compare banks before zeroing in on one particular home loan. Every bank and non-banking finance companies have different rates and criterion for granting loans. There are comparison sites that help you scrutinize your loan in terms of interest rates, loan tenure, flexible repayment options, EMIs, processing fees, pre and post closure fees, etc. So, compare them well and save on your costs wherever possible. Experts say even a reduction of 0.5% on interest rates can help you save thousands of rupees in long term of loan repayments.