Home buying is a significant event in an individuals life. Choosing the right home not only requires a lot of planning but also comes with its own set of responsibilities. Home finance is a convenient way to fund financial requirement needed to own a home. But before applying for home loan, it is important to keep in mind equated monthly installment EMI and rate of interest ROI. Banks and NBFCs today offer a variety of home loan options but it is always good to point tips what could be the best tips for you to get the lowest interest rates on home loans.
CIBIL score is one of the most important factors while determining home loan eligibility of an applicant. A good CIBIL score raises chances of borrowers getting a loan at attractive rates and EMI's. Paying regular credit card bills, and not delaying other loan EMIs helps to improve CIBIL score.
It is advisable to save money to make down payment while applying for home loan. Down payment reduces the burden of high EMI and ROI since a significant part of repayment amount already gets paid.
Debt-to-income ratio is an important factor while applying for any home loan. Debt-to-income ratio is defined as the ratio of income compared to the overall EMI amount. It is always advised to keep EMI amount less than monthly income to have convenient loan repayment process.
Stable Job & Source of Income:
Banks and NBFCs consider applicants employment stability and income to calculate his/her home loan eligibility. Applicants with a regular source of income and stable job have better chances of getting a home loan at lower interest rates.
Doing some study before applying for home loan helps to ease the process of repayment. Keeping some useful points in mind help significantly to get low home loan rates.
Disclaimer: The information contained in this post is for general information purposes only. IIFL Home Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment, etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness, or of the results, etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability, and fitness for a particular purpose. Given the changing nature of laws, rules, and regulations, there may be delays, omissions, or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan product specifications and information that may be stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan.