New Delhi | Jagran brand office: As we welcome 2022, a recent study published by ANAROCK suggests that India’s top 7 cities saw a 113% year-over-year increase in home sales in the third quarter of 2021. It’s a nod to strong demand. that the holiday season has seen in the last three months of the year thanks to the Diwali offer catalog, and experts hope the same spirit will be carried into the New Year.
Lenders have chosen to continue to offer attractive home loan deals and encourage home loans by also announcing exclusive benefits and attractive rate cuts in 2022. Industry mainstays are now extending a new rate of festive interest of 6.65% * per year, to eligible employee and professional candidates with a CIBIL score of 800 or more.
This not only reduces the interest paid on the home loan, but also champions the end-to-end digitization of the borrowing process, as these offers are only valid on applications made online, through the lenders website. Interested candidates should note that this offer is valid on applications submitted from December 28, 2021 to January 26, 2022 and on loan amounts disbursed until February 25, 2022.
Tips for getting the best interest rate for a home loan:
As the loan market is flooded with competitive offers, these are best appreciated by those who easily meet the eligibility criteria of lenders. Here’s what you can do to make sure you’re getting the best of what any lender has to offer this holiday season.
– Maintain a high credit rating
Your CIBIL score is indicative of your solvency. Therefore, it is essential to maintain a healthy credit score of 750 and above in order to benefit from a better interest rate on home loans. Here are four ways to make sure your credit score stays improved before you approach a lender.
I. Clear existing debts faster
ii. Limit credit requests
iii. Maintain a mix of secured and unsecured credit
iv. Pay credit card bills and IMEs on time
It is also essential to regularly check the credit report to detect any discrepancies in your credit report that could have an additional negative impact on your score.
– Meet the eligibility criteria specific to lenders
Lenders offer the most competitive interest rates on home loans only to eligible applicants. Since eligibility varies among lenders, it is advisable to see if you can meet lender-specific eligibility criteria for a low interest rate on a home loan.
I. Here are some eligibility criteria for standard home loans that individuals must meet. Applicants must be resident citizens of India.
ii. The age must be between 23 and 68 years old for salaried candidates and between 25 and 70 years old for independent candidates.
iii. Employees must have at least 3 years’ professional experience, and independent candidates must have at least 5 years professional experience.
Financiers also take into account the property chosen, its location, current valuation and tastes before deciding on the interest rate on a home loan.
– Improve and stabilize monthly income
Lenders offer suitable interest rates on home loans after evaluating the repayment capacity of their borrowers. In this case, they take into account the monthly income of the applicants. For example, lenders offer affordable interest rates to those with higher monthly incomes.
However, individuals can also mention additional monthly income to benefit from a better interest rate. Lenders allow applicants to add rental income from another property, interest earned on investments, and likes to their tax return. Borrowers should also consider their liabilities when calculating their disposable income. As a general rule, to qualify for a low interest rate, the debt-to-income ratio should not exceed 50%.
– Choose the type of interest carefully
Individuals can choose between fixed and variable interest rates when applying for a home loan. While the first type of interest stays the same throughout the term, others change based on external benchmarks, including the repo rate.
Many prefer a floating interest rate because it allows the borrower to benefit from favorable market conditions and is also the more affordable option of the two. Readers should note that borrowers with an existing home loan can still switch from variable interest rates to fixed rates through refinancing or mortgage balance transfer.
– Opt for a mortgage balance transfer
Existing borrowers can also transfer their mortgage balance to a new lender with better rates. Besides a better interest rate, this facility also allows individuals to reduce the EMI of their home loans.
However, borrowers should opt for this facility in the initial stage of the repayment tenure in order to maximize the benefits. You also have to think about counting the additional costs of transferring your loan at the total cost and see if this is a transaction that makes sense to them. After taking these factors into account, if the facility offers substantial savings, you should go to take advantage of lower interest rates and better terms of service.
– Compare different lenders
A comparison of different lenders and the interest rates they offer also helps you get the best mortgage loan programs. Borrowers can also use a home loan EMI calculator to make these comparisons. Almost all major financial institutions offer this online tool to their customers for free.
To further attract applicants with a strong financial profile, lenders also offer pre-approved offers that simplify and speed up the process of obtaining credit. In addition to mortgage loans, such offers are also available on various financial products, including mortgage loans. All you need to do is enter your name and contact number to instantly verify your pre-approved offer.
Individuals employed or professionals with variable interest rates can also reduce the interest expense by making regular prepayments. In addition to interest, individuals can maximize their savings by taking advantage of tax benefits for home loans. It allows them to save on taxable income while paying off both the interest and the mortgage principal.
To be able to get the most out of year-end offers, make sure your credit profile matches what your lender is looking for, so you can take advantage of lower mortgage interest rates and make your mortgage much better. more affordable.
(Note: this article was written by the Brand Desk)
Posted by:
Talibuddin Khan
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