How to choose your home loan lender?
Are you confused
about whom to take the home loan from? Many conflicting
advices from various sources made you think of the merits and
demerits of the different lenders the rates like 7.5% p.a.
tossed around but it is unable to understand why the monthly
installments given by banks claiming to give those kind of
rates are more or less equal to the monthly installments given
by other banks charging much higher rates. In between you
hear about the perils of pre payment charges, EMI changes
during the loan tenure, etc. Home loan lender is always be a
tough decision and some of the factors to be considered for
taking such a decision are:
Banks calculate your loan eligibility differently.
Some lenders for example are very comfortable with
self-employed persons and their loan eligibility
calculations reflect that drawing salaries above a certain
value. in quite a few cases which the amount of loan the
lender is willing to give will override cost and other
Familiarity of the lender with home loan procedures can
be another important consideration. Having considered all
the non-financial factors, the cost factors should also be
given a thought… installment means. The other factors to
take into account are the upfront fees payable. This adds to
your total effective cost of loan. Another important factor
to be kept in mind is the prepayment charges, charged by the
lender. One must choose the housing finance institution who
does not charge a prepayment charge.
Home loans are available with fixed interest rates or
floating rates. In the present scenario, interest rates are
not expected to increase on long term. So, floating rate
loan may be preferable.
Consult the terms and conditions offered by leading
Banks. Verify any special offers given by direct selling
VASUDHA HOMES for any assistance.