current loans

Getting a good Home Loan Interest Rate Scheduled:  

You are better off finalizing your property first and then applying for a home loan. Banks are known to reserve the best deals for immediate disbursement cases as there are targets to be achieved.

current loans

Getting a good Home Loan Interest Rate priority

 First finalize your property, then choose your lender - A common mistake many people make is to take a pre-approved loan before finalizing property. You don't need to take a pre-approved loan to know how much you are eligible for. (Simply use our home loan eligibility calculator if that's all you want to know).  Besides, imagine falling in love with a property and then discovering that the lender you chose will not fund that property due to some legal/document issues.

current loans

Tips-5  Floating Home Loan Rates :  

Under such schemes the initial rate is fixed for a certain period and then the applicable floating rate is applied after a 1-5 year period. This is a good option in the current scenario (November 2010) where interest rates are widely expected to go up. You can compare all teaser rates schemes (including the effective weighted average interest rate) across all providers by following this links depending loans.

current loans

Tips-4  Floating Home Loan Rates :  

For HFCs : The Base Rate Guidelines are for banks, but unless the regulator for the housing finance companies, National Housing Bank comes up with similar guidelines, ironically two of the market leaders, HDFC and LICHF and many others will not be covered by the new regime. Their customer may still be governed under old non transparent regime.

cureent loans

Tips-3  Floating Home Loan Rates :  

The advantage therefore from the consumer's perspective  is that when markets rate soften, obviously new borrowers will not borrow at the same rate as earlier. So if the base rate is fixed at 8%, and bank lends to corporates at Base Rate (8%) and possibly even to existing home loans seekers at Base Rates (8%). When interest rates in the market soften, the banks will be forced to reduce their Base rates as now new customers will not borrow at 8% and banks cannot lend below that rate without reducing their Base Rates. Thus banks will be forced to lower its base rate in response to market forces.

Any reduction in base rates, will automatically apply to the old customer as well as new customers without any discrimination.  

cureent loans

Tips-2  Floating Home Loan Rates :  

RBI has banned lending below Base rates except limited categories of loans such as employee's loans, loan against its own fixed deposits, Differential Interest rate loans to SC/ST Tribes, etc......