mortgage loan interest rates

Why Compare Mortgage Loan Rates Before Applying

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To get the best deals on a mortgage loan, it’s vital to research and compare the interest rates because they tend to change after a set period. So read this article to get updated information on 2023 mortgage rates to make the best decision by opting for a fixed or floating interest rate.

Why compare mortgage loan rates?

Shopping multiple quotes from multiple lenders allows you to get the lowest possible mortgage loan rates. For instance, you can save up to INR 25000 a year, or INR 735000, over a 30-year mortgage. Nevertheless, since no two lenders are the same, comparing the loan offers lets you know in detail about every offer, rate, and term, helping you make the right decision. Also, compare the additional costs, APRs, and other loan terms from the financial institution.

Mortgage interest rate 2023

Unlike home loan interest rates, mortgage loan rates are higher and constantly change depending on various factors. In January 2023, the mortgage rates were proposed to start from 9.00% onwards with partial or complete pre-payments to reduce the loan term (either 15 or 20 years) or EMI. However, it differs across NBFCs based on your profile, income, the need for the loan amount, tenure, credit score and history, and additional factors.

Conclusion

So, it’s time to begin the search and apply for a mortgage loan suiting your budget and goals.

Just go to the lender’s website to get all the related information, apply in just a few simple steps and get your loan approved.

Must Read: Tips to Get the Best Mortgage Loan Possible

Know Your EMI Before Getting A Mortgage Loan

One of the key deciding factors for any kind of loan is the interest rate at which the loan is available to the borrower. A mortgage loan is no different. When you opt for a mortgage loan from a trusted name like Fullerton India, you get an assurance of the best possible mortgage loan interest rate along with other benefits like:

  • maximum value on your property as a loan
  • flexible repayment options
  • flexible tenures as per the borrower’s convenience 

It is advisable to get a fair idea of your EMI before applying for a mortgage loan so that you can be sure that the loan EMI would comfortably fit in your monthly budget. For this, you can use the mortgage loan EMI calculator given on the lender’s website. 

Fullerton India’s mortgage loan EMI calculator helps you determine the EMI you would have to pay for the loan amount you want, for the loan tenure that suits you, also taking into consideration the mortgage loan interest rate applicable on your loan. 

Steps for the Mortgage Loan EMI Calculator

  • Select the loan amount based on your current financial needs. With Fullerton India, you can take a mortgage loan of up to Rs. 5 crores. 
  • Choose the time duration for which you want to take the loan. This tenure can be as long as 15 years.
  • Select the rate of interest on the mortgage loan.

This will give you the expected EMI on your desired loan amount. You can try various combinations of tenure, principal amount, and interest rate to get to your suitable EMI. This way, you can find the best option for availing of a mortgage loan with a trusted name like Fullerton India.

7 Easy Steps to Get a Mortgage Loan

A Mortgage loan is one of the most preferred options to arrange finance in times of need. With a mortgage loan, you can arrange financial assistance without having to sell off your valuable property. There are multiple reasons why mortgage loan or loan against property is so popular, like:

  • low mortgage loan interest rates as it is a secured loan, 
  • freedom to continue using your property even while it is mortgaged,
  • freedom to use the loan amount unrestricted, 
  • and a high Loan To Value. 

7 Easy Steps to Get a Mortgage Loan

With a leading lender like Fullerton India, you can get a mortgage loan in these easy steps:

  • Visit Fullerton India’s website and click on the ‘Apply now’ option. Select ‘Loan Against Property’ and choose if you are a salaried person or are self-employed. 
  • Fill out the online form, enter a valid mobile number, and put in the OTP details.
  • Enter your personal details in the loan application form. 
  • Put in the details of your employment and your bank details.
  • Scan your documents and upload them.
  • Click ‘Submit’ and your eligibility will be confirmed within a few minutes. 
  • If you are eligible, a customer care executive will call you up and take you through the further process. 

With these easy steps, you can quickly get a mortgage loan at low mortgage loan interest rates from Fullerton India. Furthermore, if you are already a Fullerton India customer, you have a high probability of being eligible for the unique Emergency Credit Line Guarantee Scheme.

Also Read: Follow These 7 Steps To Get A Mortgage Loan

How to Select the Perfect Property Mortgage Loan?

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Choosing the right property loan

Choosing the right property loan is one of the first steps in the home buying process. You must select a home loan that offers competitive mortgage loan rates, low operational costs, and flexibility to prepay. 

Let’s look at three factors to consider for choosing the best mortgage loan. 

  • Fixed vs. Floating Mortgage Loan Rates

Mortgage loan rates are of two types: fixed (that stay the same throughout the loan tenure) and floating (that changes throughout the tenure as per market conditions). Even though floating rates may seem tempting, fixed interest rates have proven to be more advantageous. 

  • External Benchmarks

The benchmark rate is the lowest interest rate at which a lender can provide a loan to a consumer. The benchmark rate aligns with the repo rate set by the RBI. It’s wise to choose a lender that has linked its loan rates to the repo rate. This way, you can stay assured you’ll receive the best mortgage loan rates. 

  • Loan Tenure

Selecting a suitable loan tenure is as crucial as choosing an ideal lender. Longer loan tenure is a better pick because you can get a higher loan amount and a low interest. Moreover, your cash inflow will increase as years pass by, enabling you to prepay your loan and reduce the interest outgo.

Wrap Up

Choosing the right property mortgage loan is an essential aspect of buying a home. When searching for lenders, look beyond the interest rate and evaluate other operational costs and quality of service to make the best selection. 

Additional Read: Fixed vs Adjustable Mortgage Loan Rates: How to choose the right for your need?

What is a Mortgage Loan, And How To Get One For Yourself?

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A mortgage property loan is a secured loan that allows you to access funds to meet your financial requirements without putting any burden on your savings or investments. To get a loan, you need to pledge your property as collateral. It means that if you default on your repayments, your lender has the legal rights to sell your property to recover the loan amount.  

The loan amount that you can get depends on the value of your property. You may get up to 70% of your property’s value on a loan. The interest rate on a mortgage property loan is lower than other secured loans, and the loan tenure can go up to 15 to 20 years. Before applying for a mortgage loan, it is imperative to assess your loan affordability through a mortgage loan calculator available online.  

To apply for a mortgage loan, you will have to check with your lender about their eligibility criteria and ensure to meet them. Here are the requirements that you need to meet:  

  • You must be at least 21 years old at the time of loan application and 65 years during the loan maturity.  
  • You must be either a salaried employee of a company or a self-employed person. 
  • You must not have any current financial obligations. 
  • You must show a stable income based on your lender’s policy. 
  • You must be working in your current company for at least one year and have work experience of at least three years.  

 Besides meeting the eligibility criteria of your lender, prepare and submit the following document proofs: 

  • Identification proof 
  • Address proof
  • Salary slips 
  • ITR or form 16 
  • Bank statement

Check out the eligibility requirements of your lender to apply for a mortgage loan right away.

Must Read: 6 Steps of the Mortgage Loan Process: From Pre-Approval to Closing

Questions To Ask Mortgage Lenders

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Are you thinking about taking a mortgage loan, well it may be tough if it is your first time. For such situations, these are some questions that you can ask your lender.

Questions to Ask Mortgage Lenders

  • What is the type of mortgage loan?

The first question would be the types of mortgage loan that the lender is offering. There are different kinds of mortgage loan like:

  1. Loan against Property
  2. Home loan
  3. Leasing loan

Based on your requirement you can choose the one that fulfils your expenses.

  • How much can I borrow?

Once you know the loan, the second question would be the loan amount that you can borrow. Normally, if you are opting for a home loan, the loan is offered for close to 80% of the price of the property. 20% of the price has to be paid by the borrower from his/her savings 

  • What is the mortgage loan interest rate?

You must never shy away from asking the lender the interest rate at which the loan is offered. For different lenders, the rate may vary, so it is important to ask this question and then make the right decision about the lender you want to choose. 

  • What does the final closing cost?

If you are thinking that the principal amount is all you have to pay, then you might be wrong. The closing cost will include loan-origination fees, appraisal fees and attorney fees (if any), and many more. So, make sure to ask your ender this.

Conclusion

These are some questions that will help you understand the mortgage loan better. It will also help you in making the right financial choice for buying your house.

Must Read: A Complete Guide about What Is a Mortgage Loan and how to get?