{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.indusind.com\/iblogs\/manage-your-finance\/5-factors-that-affect-home-loan-interest-rate\/#BlogPosting","mainEntityOfPage":"https:\/\/www.indusind.com\/iblogs\/manage-your-finance\/5-factors-that-affect-home-loan-interest-rate\/","headline":"5 Factors that Affect Home Loan Interest Rate","name":"5 Factors that Affect Home Loan Interest Rate","description":"Buying your first home can mean different things to different people. On the one hand, it can be an emotional investment for some, and on the other, it may represent climbing the ladder of success for others. But one thing that remains constant is that it is a significant financial commitment. To make your job...","datePublished":"2022-05-06","dateModified":"2022-12-20","author":{"@type":"Person","@id":"https:\/\/www.indusind.com\/iblogs\/author\/indusind\/#Person","name":"IndusInd Bank","url":"https:\/\/www.indusind.com\/iblogs\/author\/indusind\/","image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/8169561f34fb61e737060f1a537a86e2?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/8169561f34fb61e737060f1a537a86e2?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"IndusInd","logo":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","width":201,"height":86}},"image":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/5-factors.jpg","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/5-factors.jpg","height":400,"width":1060},"url":"https:\/\/www.indusind.com\/iblogs\/manage-your-finance\/5-factors-that-affect-home-loan-interest-rate\/","about":["Manage your Finance"],"wordCount":1030,"keywords":["apply for a home loan online","home loan interest rates","home loan online","home loan rates"],"articleBody":"Buying your first home can mean different things to different people. On the one hand, it can be an emotional investment for some, and on the other, it may represent climbing the ladder of success for others. But one thing that remains constant is that it is a significant financial commitment. To make your job easier, you can apply for a home loan online by IndusInd Bank and unlock the door to your happiness.However, if you are worried about high-interest rates on home loans, this article is for you. Keep reading to learn how to bring down your home loan rates and pay the loan easily.Why Should You Borrow a Home Loan by IndusInd Bank?At IndusInd Bank, we work hard to fulfil your dream of owning your dream home. Therefore, we bring you a wide range of housing loan products with a myriad of benefits, such as:Attractive home loan interest ratesSimplified documentationBalance transfer facilityTransparent processingNo hidden chargesDoorstep servicesFactors that Impact Home Loan RatesHere are the top factors that lenders consider while deciding your home loan interest rates.#1 Credit ScoreAs you know, your credit score reflects your creditworthiness to the lender and helps them judge whether you are a responsible borrower. Therefore, a good credit score can be a sure shot way to fetch you lower home loan rates. Why? Because it gives you a chance to negotiate with the bank or lender based on your creditworthiness.So, before you apply for a home loan online, ensure a healthy credit score by making timely repayments and keeping a close eye on your outstanding debts. You can also find other simple yet effective methods to improve your credit score.#2 Location and Value of the PropertyAnother factor that plays a vital role in determining your interest rates is the location and value of your house. If the property is located in a low-profile neighbourhood or has meagre amenities and poor construction, the resale value would be reduced. As a result, the lender may charge high home loan rates.#3 Job Security of ApplicantHaving a stable job and income can do wonders for your loan application. This is because having an unstable income makes you a high-risk loan candidate for the lender. So, if you are a doctor, chartered accountant, salaried professional, a government employee, etc., you can get lower home loan interest rates on the housing loan.#4 Type of InterestAs a home loan borrower, you must have come across terms like fixed, floating and mixed interest rates. As the names suggest, fixed rates stay constant throughout the loan tenure, and floating rates fluctuate according to the market changes. Mixed interest rates stay fixed for a certain period and then change to a floating rate. Since fixed and mixed interest rates are considered riskier, banks may charge a higher interest rate on them.#5 Loan Tenure and AmountLast but not least, a shorter loan tenure can fetch you a lower rate of interest and a longer loan tenure may attract a higher interest rate.Plus, your loan amount can also impact the interest rates as some banks charge a higher interest rate on a high amount as it implies a more considerable risk to the lender. Thus, paying a large down payment is a wise way to decrease the home loan rates.Parting ThoughtsIf you are searching for a home loan to purchase your dream abode, home improvement or home extension, partner with IndusInd Bank. We offer you a whole range of offerings and a hassle-free borrowing process. So, why overthink it? Visit our website and apply for a home loan online today!Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct\/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.Share This:"}