Getting a housing loan has never been easier, with so many lenders offering great deals on mortgage loans. Moreover, the online based loan comparison tools have made it easier for the individuals to compare current mortgage rates offered by different financial institutions. The considerations for selecting Mortgages involve a number of factors including mortgage insurance, prepayment penalties, conversion options, closing costs, and points. Either you’ll have to gather all the necessary information on your own or hire a mortgage consultant who can help you in sorting the options and selecting the most financially advantageous program.
Current mortgage interest rates in India
State Bank of India–
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Women Borrowers can facilitate themselves with home loan at concessional rate ranging around @ 8.65%.
Axis Bank –
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You can avail ShubhAarambh Home Loan at the interest rate of 8.50% with 12 EMI waiver offer. In addition, Axis Bank is offering Home Loan Top Up at the Interest rate of @ 8.75%.
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You may apply for Indiabulls e-Home Loan at the rate of 8.40%, while facilitating yourself with various benefits like DigiLocker integration, IB chat, and e-sign.
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HDFC is offering Home loan @ 10.55% with less documentation.
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You may facilitate yourself with home loan offered by Maxgain @ 8.70%
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Inclusive of the overdraft scheme, Citibank’s mortgage loan rates @ 8.60%.
Bank of Baroda –
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The bank pre-approves the home loan of the applicant @ 8.55% even before the purchase of property.
Types of Mortgages
Here is the list of the popular types of mortgage loans available in India-
New Home Loan-
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It is ideal for the individuals who are looking forward to buy a new house, flat, or apartment from a seller/builder. You may also get this loan for construction of new house.
Home Extension Loan –
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This loan is meant for expanding adding a new space like balcony, floor, or a room to the existing house building.
Home Improvement Loan-
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If you are looking forward to renovation of your existing home like painting, flooring, tiling, etc. then go for home improvement loan.
Land Purchase Loan –
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You may apply for this type of loan for building a house or purchasing a plot. The Interest rates of Land Purchase Loan range from 1.5 to 2%.
Home Conversion Loan-
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This scheme allows the borrowers to get their existing loan converted to floating rate from fixed rate or vice-versa. However, a conversion fee is charged on the outstanding principal amount for switching your loan.
There is more to the list in addition to the above. They are Home Loan Overdraft, Home Loan Top Up, NRI Home Loans and Pre-approved Home Loan. It is advised to compare the interest rates and policies carefully before applying for the loan. You may find current a knowledgeable mortgage specialist to get the best deals as per your specific needs.
Interest rates on mortgages are usually lower in comparison to other forms of borrowing. Reason- Mortgage loans are secured against the property of the applicant. This means the financial institution/bank has the security against the loan. Even if the borrower fails to repay it the institution has something valuable to cover the loss. If not all, some amount of the mortgage can be recovered by selling the property.
Note that mortgages interest rates change constantly. It is better to cross check the interest rates before giving in your application for mortgage loan. You may also facilitate yourself with the discount offers and schemes offered by the banks from time to time. The basic mortgage loan options for homebuyers include interest-only jumbo, fixed-rate, and adjustable-rate. You may define your preferences and choose one for your requirement accordingly.