Home loan interest rate is a major factor that influences the total cost of your house borrowing. As home loans are higher ticket loans with the longest tenure ranging from 20 to 30 years. Hence, the interest rate charged on your house loan has a great effect on your finances for a greater time. Due to all these factors, a home loan seeker always looks for a home loan at a lower rate of interest. But, in order to achieve this, as a borrower, you need to compare different banks for their interest rate offerings and applicable terms and conditions. After all, a happy borrowing is always the one which is pocket-friendly and causes minimum hassle throughout the tenure.
Also getting a lower interest rate on your home loan will not only reduce the EMI outgo but also makes it easier to focus on other financial liabilities or goals. Hence, here is a list of the best home loan interest rate for 2021:
How to Get the Lowest Home Loan Interest Rates?
- Add a co-borrower to your home loan application.
- Show a second source of income.
- Keep required documents handy.
- The property you have selected to buy should have all the clearance by the authorized bodies.
- You should have a good repayment history (for previous loans).
- You need to have a good debt to income ratio.
- If you have already availed of a home loan then you can transfer it to another lender who is offering a home loan at lower rates.
Besides home loan interest rate, there are several other factors like loan amount, processing fees, and tenure that make up the total cost of your home loan. Penalty charges, pre-payment and pre-closure costs are some of the other important factors which are important to know and understand before you apply for a home loan. However, it depends on your eligibility criteria fulfilment that what rate of interest is offered to you by a particular lender.
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