Buying a home is still the dream of many. Your home makes you feel safe and gives you shelter to you and your family. But at the same time, buying a house comes with lots of financial planning.
Home loan interest rates vary from 8.30%–11% p.a. in India. Home loan interest rate is relay on your credit history, age, income, employment stability amongst others.
Factors that impact Home Loan Interest Rates
It varies from individual to individual and is largely based on the following factors:
Credit Score: An applicant’s credit score represents the individual’s financial profile. The credit history of the users plays a vital role in getting a home loan sanctioned and in getting the best interest rates.
Loan Amount: The interest rate of a home loan is directly dependent on the loan amount. If the loan amount is higher, the interest rate will be high.
Down Payment: While buying a house or a flat, the minimum amount of money needs to be paid. This amount is called a down payment. If a larger amount is made as a down payment, the loan amount will be lower.
Type of Interest: Two types of loan interest rates are available – Fixed and Floating rates. In the fixed interest rate scheme, the rate of interest remains the same. In the floating rate of interest scheme, the interest rate changes according to the market.
