The festive season brings in a time of joy and celebrations. If you are planning to apply for a home loan for a property purchase, this is a great time to do so! Financial institutions are known to provide great home loan deals during the festive season, so you can expect to get a low interest rate on housing loans.
A low home loan rate has many advantages and makes life much easier when it comes to repaying the loan. Here is why this is a great time to buy that house you have always dreamt of.
- Home loan rates have reached an all-time low!
Home loan interest rates have been on the decline for quite some time now. There are lenders offering home loan rates as low as 6.55%. This is a great time to take advantage of the low housing loan interest rate available and get a great loan plan.
- EMIs can be conveniently paid off
The interest rate of a home loan can have a significant influence on the loan EMIs. With a low home loan interest rate, the home loan’s monthly instalments would be easier to pay off. This is the reason why borrowers look for the lowest home loan interest rate that they can find. All you need to do is make use of a home loan EMI calculator, which will help in understanding whether a loan plan’s EMIs are affordable, or not.
- Lenders offer suitable repayment tenures
A suitable repayment tenure is very important to make sure the loan is repaid without any financial difficulty. Lenders usually offer repayment tenures as long as 20 years, so this gives borrowers an ample amount of time to pay off their loan EMIs. Now, lenders offer short as well as long-term repayment tenures. Going for a short tenure will mean that you are saving money on the interest by cutting down the number of monthly instalments. However, keep in mind that the EMIs would be higher in this case, so make sure to choose a home loan tenure that is most suitable according to your budget.
- Applying for the loan as soon as possible is beneficial in the long run
Since home loans are usually long-term plans, applying for a loan in your late 30s could mean paying off EMIs until your late 50s. This is almost close to your retirement, which might not be ideal for savings. However, if you apply for home loan in your late 20s or early 30s, the home loan can be repaid in full by the time of your 40s or early 50s. The loan debt being repaid in full as soon as possible will also bring peace of mind, which is why it is advisable to apply for a home loan as early as possible.
Also, make sure to maintain a good CIBIL record. Financial institutions prefer borrowers who have credit scores of 750 or more, so keep this in mind before speaking to a lender about a home loan.