Home Truths: Making home loans count over the long term

BUYING A HOME is one of the biggest financial mile­stones in life, and finding the right home loan can make all the difference. With dozens of banks and housing finance companies vying for attention, it’s easy to feel overwhelmed. The key is to focus on the essentials— interest rates, flexibility, and hidden costs—before signing on the dotted line.

Start with comparing interest rates across lenders. Even a small 0.25 per cent can save lakhs over a 20-year tenure. While fixed-rate loans offer stability, floating rates often work out cheaper in the long run when the market is favourable. Before deciding, assess your financial comfort with changing EMIs.

Processing fees, prepayment charges, and hidden costs often add up quietly. Many lenders waive off processing fees during fes­tive seasons, making it a good time to apply. Always read the fine print—especially clauses about prepayment and foreclosure—to avoid surprises later.

Your credit score plays a vital role too. Borrowers with scores above 750 typically get better interest rates and quicker approvals. If your score is below that threshold, consider improving it by repay­ing credit card dues or existing EMIs on time before you apply.

Lastly, explore special schemes. Some banks offer lower rates for women buyers, housing loans tailored to salaried professionals, or flexible repayment options linked to income growth. Choosing the right loan doesn’t just make buying your home easier—it helps you build financial security for the future.

In today’s dynamic lending landscape, the best home loan isn’t just about the lowest rate—it’s about transparency, flexibility, and a lender who values long-term relationships.