Here's How You Can Get the Best Home Loan Interest Rate | Kotak Mahindra Bank - Home Loan Stories

28 OCTOBER, 2021

Sure, home loans can help you buy the house of your dreams. However, they can be a huge financial commitment and hamper your finances adversely. Though you can repay the loan in small instalments called equated monthly instalments (EMI), it can be a significant monthly expense. One way to reduce your debt burden is by borrowing as per your affordability and getting the best interest rates.

Here are ways through which you can get a home loan with the best interest rates from Kotak Mahindra Bank:

  • Choose the lender carefully

You must choose the best lender to get an interest rate that helps you save money. The lender that you choose should offer low-interest rates and levy fewer charges and costs. For example, Kotak has one of the lowest home loan interest rates in the market currently with 6.50% on home loans. Moreover, it has a low processing fee and no hidden charges. With us, you can be assured that you are getting the best home loan interest rates and are saving money on your housing loan.

  • Maintain a high credit score

Your credit score has a crucial impact on your interest rates. If you have a low credit score, the lender can reject your application. But, if you fulfil other eligibility, they could accept the application but with high interest rates. On the other hand, a high credit score helps you get low interest rates and the best deals. You must maintain an excellent credit score while applying for a home loan. It would be best to have a credit score of 750 and above to get the best interest rates. Before you apply, check your credit report and rectify the discrepancies, if any. 

  • Pay off your debts

Lenders carefully analyse your debt to income ratio while determining the interest rates for you. The debt to income ratio is calculated by dividing the total monthly debts by total income. If you have a high debt to income ratio, they could offer a high interest rate to cover their risk. You must pay off your credit card bills and other debts to the extent you can before applying for a home loan.

  • Pay a higher down payment.

Lenders require you to pay 20% of the house cost as a down payment. However, you can pay a higher amount if you can afford it. A higher down payment reduces your loan amount and helps you save money. Moreover, when you pay a higher down payment, it gives a positive impact on your creditworthiness, helping you get lower interest rates.

We have easy eligibility and minimum documentation requirements for home loan approval. You can apply online with a simplified application process and upload your documents for quick processing. Moreover, you can get approval within a few hours and contact our loan expert to solve your queries. Get the best home loan interest rates with us and fulfill your dream of owning a home, today.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.