How to Find the Best Home Loan Deal

Find best home loan deal

If you dream of buying a property, you're not alone. But then, you don’t have the cash to give wings to your dreams. There are over fifty lenders in India who may look forward to give you a Home Loan deal. The competition amongst home loan lenders is getting aggressive. But then, with so many options at your hand, whom do you choose?

Last month in May, several top lending institutions had reduced their home loan interest rates and are expected to lower them further, given the push to the housing needs in the country.

Let us check out a couple of things that you need to ask your lender so as to grab the best home loan deal.

1. Cheap is Not Always Good

   
   Make sure not to run after the cheapest rate of interest. Instead, you need to look for a competitive rate and concentrate on the different aspects of the loan. It is unwise on your part to think that cheapest is always the best deal to go in for. 

2. Floating versus Fixed Interest Rates

   
   Look for a floating rate of interest and don’t settle down for a fixed one even if it offers an attractive rate. It is because much later you will come to know about the hidden twists in fixed products. Most of us usually ignore that there's a foreclosure penalty valid within the fixed term. In addition, you will also find that the margin alters after no sooner than the fixed tenure comes to an end, in case the offer rate was for teaser period. 

3. Regular Reducing Balance versus a Monthly Scheme

   
   Make sure you choose a lender who provides regular reducing balance and doesn’t stick to the monthly scheme. It will not create any huge difference unless you make plans for a partial repayment. On the other hand, if you settle down for a monthly reducing balance plan, then even if you close an amount partially in between two EMI dates, they will consider the repayment only from the following EMI date. This in turn will force you to pay interest even on the repaid sum for those particular days. 

4. Make Unbiased Decisions

   
   Don’t judge a situation with your previous experience with some other product, or what your friends, relatives & colleagues have been through lately. You should remember that this is finance, a simple mathematical product, hence all you need to do is do your math & make decisions accordingly. 

5. Read Reviews Online

   
   Make sure you go through the online reviews carefully. However, it is seen that 99% of them are otherwise motivated. You’ll come to know that people who are badmouthing lender possibly use dummy ID-s like lisahayden, kingpin, bigboy, greatguns, among the others. So prior to considering their comments make sure to check the IDs they've used thoroughly.

6. Contact your Existing Financial Planners

   
   Your bank relationship manager, wealth manager, tax-planner, chartered accountant, and finance controller in office will be of immense help. Make sure to get their assistance to reach the best mortgage broker.

7. Looking for a New Age Product

   
   Look for new-age product that will help you curb your expenses. Look for standard home loans that offer surplus funds and take the loan for tax-savings or clearing off debts. These days, borrowers have different need instead of simply borrowing for the need of money.

8. Read the Offer Document Carefully

   
   Make sure you check the papers thoroughly; after all you are getting into a long-term relationship. It would be unwise on your part to choose the first lender that approaches you or offers you the lowest rate of interest. Make sure they offer various services such as provisional amortization, tax certificates, documents, part closure solutions, and decrease in the tenure/EMI after you have made a partial payment. Do not compromise on the facet of post-sales service. 

Take your time and choose a property from any of the top real estate builders. And with a professional lender at your end, you know things will be absolutely fine at your end