Know Why This is a Great Time to Get an Affordable Home Loan

Did you know that it is the best time to get an affordable home loan? 

Yes, you can apply for an online home loan at a lower rate and save big on repayments. 

But why home loans have become affordable? 

Let’s know in this quick post!

COVID-19 and RBI’s lower repo rate 

To boost the sluggish real estate market due to COVID-19, RBI did not increase its repo rate and kept it at 4% for a long time. 

It means that lenders could pass on the benefits to customers and offer them a home loan at a lower rate. And that’s why you could see that lenders are applying for home loans at a lower rate. 

It helped a customer to calculate their savings beforehand using the home loan calculator than earlier times. 

Hence, when they knew that they could save huge on home loan repayments, they opened to it. This way, a large number of people started applying for a home loan, and this gave pace to the market in India again. 

When is the best time to apply for a home loan?

1. When the rate of interest is lower

Applying for a home loan is best when the interest rate is lower. This way, you can begin managing your outlays better and still repay EMIs on time. It is the best time to apply for a home loan due to rates going down. 

2. When your income is sound 

If your income is consistent, you won’t have issues paying the home loan EMIs on time. 

3. When your work experience is long 

Lenders prefer home loan approvals to those applicants with a consistent work experience with an MNC, Public or Private Limited Company for minimum 3 years.

If you want to buy or construct your home using housing finance, it is the right time to do that and save on repayments.