When choosing a home loan, it is very important to find out the home loan interest rates so you can choose the option that suits your situation. But with so many offers available from so many lenders finding the right one can be overwhelming.
If you want a home loan or you’ve already got one, paying interest is something you can’t avoid. However, these are the steps you can take to make sure that you are getting the lowest interest rate possible.
Home Loan Interest Rates
Home loan interest is a fee charged by a lender for a loan. To put it in an easy way, the interest is the cost to borrow the money for a home loan, car loan, credit card or any type of loan. The rates are usually expressed as a percentage.
Home loan offers customers competitive interest rates that will make it easier to own a home of choice. We understanding that interest rates have a big influence on your repayments lower interest rates translate into lower.
That’s why we, offer attractive interest rates across tenures helping you afford your dream home without a major impact on your monthly financials. The rates and charges are transparent and depend on a variety of factors including your profile, tenure, and loan amount, and property type.
Why do Some People Qualify for Higher or Lower Interest Rates?
Sometimes, lenders will have to calculate an individual’s interest rate based on a number of factors related to how trustworthy they are and the risk associated with the loan.
However, there are several factors that can affect why one home buyer or borrower might qualify for a high interest rate while others may qualify for a lower interest rate. This usually depends on whether their lender finds the borrower’s situation to be high risk or low risk.
The high-risk borrowers tend to have a higher interest rate while that of low-risk borrowers are more likely to benefit from the lower interest rate.
Here are some deciding factors:
- Loan to Value Ratio (LVR).
- Lifestyle and living expenses.
- The deposit for the intended property.
- Income and financial commitments.
- Existing assets e.g.’ property.
- If the borrower is an investor or owner occupier.
- If the borrower intends to make P&I repayments or Interest Only repayments.
- The Value of the new property.
Here are some deciding factors you should look at for.
What are the different ways to pay Interest on Home Loan?
There are three ways a borrower can pay back his/her interest and which option you choose will be determined by your specific financial situation and future plans.
- The fixed interest rate.
- The variable interest rate.
- A partially fixed interest or a split loan.
These are the different ways to pay back interest on a loan.
How to get Better Interest rates on Home Loans
Here are some of the ways you can get the lowest interest rate home loans.
- Set the target of the EMI.
- Increase the EMI.
- The refinance of the loan.
- The shorter tenure.
The above are lists of how you can get better interest rates on home loans.