A Home Loan Rates Comparison Guide

For most borrowers, the cheapest home loans are the ones that offer the lowest home loan rates in India . For the most part, it is true. It is certainly the biggest denominator. However, if the other fees, charges and taxes raise the principal amount of your home loan, it can be useless to have lower home loan rates. Hence, this home loan interest rate comparison guide is about making sense of this financial product holistically.

Realistic numbers:

When you are considering ideal housing loan interest rates , the advertised ones are applicable to the best borrowers only, where professional credibility and repayment ability are easily aligned to repay the principal amount and interest over a period of time. For average borrowers, the applicable home loan rates will be higher. More importantly, any hiccup in the credit report or professional ability can cost you. So, make a smart home loan application to get the lowest possible housing loan interest rates.

Realistic calculations:

When you compare several home loan rates in India, it cannot be any helpful to make a decision if you can use inaccurate principal amount or tenure. So, calculate the principal amount correctly by including the other service charges, taxes, stamp duty, home loan protection plans and more. Select a decent tenure that you can afford and then make the calculations that will allow you to see how different home loan products will result in different EMIs. This is the most efficient way to compare home loan rates in India and select the right housing loan product for your home.

One horse race:

When there is a single horse in a race, there is no winner or loser. Comparison is the key. When you want a home loan, apply to the select few home loan lenders so that you can compare their offers and select the most suitable one possible. If you have a single offer, you cannot take advantage of the competition in this fierce finance market. If you are referring to just the advertised home loan rates, these calculations will not a reasonable indication of your real home loan tenure.

As you compare the realistic home loan rates with the right principal amount, you can select your home loan profitably. However, if in spite of all efforts, the realistic calculations of your EMIs are higher than 30% of your monthly in-hand salary, it might be time to consider another property.