The quarter financial rates left everyone awe struck as the general consensus was that there can be further raise in the rate like the two preceding quarters’. But RBI left no traces of rate change in this quarter.
However, when interest rates are compared over the past two years, the home loan interest rates are taking the upward path from 8.3% to 9%.
Here are the most important points to be prepared with before the raise of the home loan interest rates.
1. Run a Rate Rise Road Test – Make minute adjustments to your daily expenses and see how you can coup up with the flexible interest rates. Simply use the home loan emi calculator to understand the influence of the rate rise say 0.25%, 0.5%, 0.75%, might have on your emi or tenure of your home loan. Also calculate if you can make some additional repayments with your current home loan to reduce the rate rise influence.
2. Stack More Savings – There is a good range of good value savings in the market. The fixed deposit interest rates have been comparatively at its best. Save so that your rainy day fund is primed and ready to go when needed.
Or have an offset account to deposit your extra pennies into it, which will count against the principal amount of your loan amount which means pay less interest over the life of loan.
3. Review or Refinance – Reviewing your home loan is a great way to find out if you are paying lesser in the market. If no, deal with your lender for a better rate. Or refinance from another lender which has a better rate in the market. Learn about the best lender in the market through Loanyantra’s experts.
4. Home Saver Plans – If you have a clear family budget and if your budget allows you to have surplus funds, then enjoy the home saver plans by different lenders in the market. Home loan overdraft facility is a great option to save now on interest paid on the loan over lifetime. Though the interest rate is comparatively high, it is worth opting a home saver plan instead of making the surplus funds lay idle in the account.