5 Interesting Facts About Housing Loan Interest Rates.

Housing loan interest rates are an integral component of a home loan. However, in the attempt to find a lender that provides the lowest rates, most borrowers forget to acknowledge a few important features and facts about this cost. That’s why this article will throw light upon 5 of the more interesting yet seldom dwelled upon points of home loan interest rates - hopefully, these pointers till influence your decisions in a positive manner. 1. Interest rates depend on your loan slab. So not only will different lenders have different interest rates, but different loan amount also have differing interest rates. For example, with most leading lenders, loans up to 30 lakh will have interest rates ranging between 8.55% and 9.05% per annum. On the other hand, if you were planning to borrow above 30 lakh from the same lender, you’d have to as much as 8.65 or 9.15 percent per annum. 2. Women get lower housing loan interest rates. It’s not a very known fact but women borrowers get discounts on normal interest rates. This discount can be as much 0.05% per annum. This might seem like a negligible difference but imagine a 0.05% on your principal amount every month for 360 months (30 year tenure). Yes, that will amount to a large sum of money saved. You could enjoy these benefits by co-borrowing with a woman, be it your wife, sister or mother. 3. There are types of interest rates. Before you apply, you should know which type of housing loan interest rate is best suited for your needs. Fixed rates stay constant throughout the tenure of the loan. They aid full-proof planning as they will never change. They are better suited for older borrowers as they can plan the repayment better keeping in mind their retirement plans wherein their income sources might be constrained. Floating rates on the other hand are better suited for younger borrowers. They are generally much lower than fixed rates but could rise in the future, or fall even further. Also, since younger borrowers will have many working year ahead of them, they can accommodate any rate hikes better since they have salary appraisals and more bonuses to look forward to. 4. Joint home loan tax benefits. If both you and your spouse deal with significant tax deductions, it makes sense to borrow the loan jointly. Firstly because on account of a woman borrower, you will enjoy lower rates and secondly because the tax benefits will be individually applicable to both of you. This means the 1.5 lakh deduction under section 80C will be applicable for both of you, as would the 2 lakh deduction under section 24 which is provided against the total interest amount paid in the year. 5. Today’s interest rates are the lowest & they could get lower. The housing loan interest rates applicable are probably the lowest in the history of housing finance. Meaning, if there was ever a good time to take a home loan, it’s now. Some experts even suggest that the rate will fall further in the future, making floating loans a great option. If you are in doubt regarding these points, it makes sense to speak to a financial expert or talk to one of the lenders about them. They will guide you with the nitty-gritty details in regard to these aspects of housing loan interest rates. Good luck and all the best!