Your Guide to the Best Housing Loan Lenders!

Buying a home is everyone’s dream. However, buying a house requires a considerable sum of money that you might not have readily available. This is where home loans come into the picture.

Home loans are financing solutions that allow you to buy your dream home. Home loans give you the funds needed to buy a property (ready-to-move-in or under construction) or a plot of land. You have to repay the amount in EMIs over the chosen tenure.

Both banks and Non-Banking Financial Companies (NBFCs) offer different home loans to choose from. Which, among them, are the best? Read on to know more.

Choosing the best home loan lenders

There are different parameters on which you can compare the different home loan lenders to find the best. These parameters are as follows –

• Loan quantum
  Loan quantum means the maximum amount of loan that the lender is willing to give. This quantum depends on your eligibility qualifications. So, check which lender is offering how much based on your eligibility.
  Moreover, lenders have a Loan To Value (LTV) ratio up to which the cost of the property is financed. For instance, if the LTV is 80%, the lender will finance up to 80% of the property’s cost. You should bear the remaining as a down payment.
  So, check the LTV across lenders. Choose a lender offering the remaining funding depending on the down payment you want to pay.
  For instance, if you can pay only 15% of the property’s cost as a down payment, look for a lender offering an LTV of up to 85%.
• Interest rate
  The interest rate is one of the most essential comparison parameters. The lower the rate, the more you can save on the interest outgo. So, the best lender will be the one with the lowest interest rate on loan.
• Other fees and charges
  Also, check the other fees associated with the home loan. These charges also demand additional payment. As such, the lower the charges, the better.
• Loan process
  Lastly, check the loan process – the easier, the better. An easy loan application and sanction process reduces hassles and allows you to buy the home without stress.

Tips for borrowers

When selecting home loan lenders, here are some tips that might help –

• Check out the home loan offer from your existing bank. Banks with whom you have an existing relationship might offer attractive interest rates on loans. Moreover, the application process also gets easier.
• Use the home loan EMI calculator to find the prospective EMI of the loan. Lenders with the lowest EMI should be preferred.
• You can reduce the interest rate if you have a high credit score. So, maintain your credit score for lower rates.

FAQs