Home loan options are giving control back to the customers
Date : April 26, 2018
Category : Uncategorized
A few decades ago, when home loans had just arrived in Indian market, home buyers were skeptical and usually preferred other methods to finance their homes. However, the current scenario stands in sharp contrast with the past. Home loans have now become the popular option to finance the home of your dreams and not without reason. Today, there are various home loan options to suit the needs of every buyer. The scenario has changed so much that the available home loan options are turning non-buyers into buyers. Let’s look at some trends that is fueling this change:
Step Up Loans
The youth of today is ambitious and driven. They chase their dreams relentlessly and don’t want to wait for a decade of their professional lives before opting to buy a home. Step up loans are designed for these people who have good professional qualifications and are poised to grow in their professions.
For these home loans, the banks assess the potential of the annual increase in the individual’s salary and then step up the amount of loan they can be sanctioned. While HDFC averages a 5 percent to 12 percent higher eligibility, in case of ICICI bank the loan eligibility could be as much as 30 percent higher.
Choice between flexible and fixed rate home loans
On the top of step up loans, customers also have the option to choose between fixed and floating interest rates in home loans. In case of fixed interest rates, the interest rates remain fixed throughout the loan tenure, while in case of floating interest rates the interest rate fluctuates according to the market. While fixed interest rates help in planning your budget well in advance, floating interest rate can help save a fraction of loan amount in case the interest rates go down. However, you must always read terms and conditions properly to make a sound decision.
Flexible payment structures
While step up loans help gain a bigger home loan for your dream home, flexible payment structures help you plan your financial life according to your convenience. Typically the loan tenure is divided into three parts. For example- A 20 year tenure can be divided into these phases: 1-2 years, 3-10 years and 11-20 years. Banks allow you to choose whether you want to pay a higher EMI in the first, second or third phase of the loan, which provide you a greater control over your financial life.
In current scenario, home loan options have evolved to make the journey to your dream home a lot easier. Home loan solutions are designed to serve the needs of the customers. As customers, it is the right time to grab the opportunity and move into the home of your dreams.