Check Mortgage Loan Interest Rate Online – Loan Bazaar
Easily compare and check the latest mortgage loan interest rates online at Loan Bazaar. Our platform provides up-to-date information on the most competitive rates available in the market, helping you make an informed decision. Secure the financing you need to make your dream a reality with competitive mortgage rates today.
* Onwards
| Lender | Interest Rate (ROI) | |
|---|---|---|
| Lender | ROI | |
| Bajaj Finance | 8.00% Onwards * | Claim Claim |
| SARASWAT BANK | 8.75% Onwards * | Claim Claim |
| SVC BANK | 8.75% Onwards * | Claim Claim |
| YES | 8.95% Onwards * | Claim Claim |
| INDUSIND BANK | 9.00% Onwards * | Claim Claim |
| Tata Capital | 9.00% Onwards * | Claim Claim |
| THANE JANATA SAHAKARI BANK | 9.15% Onwards * | Claim Claim |
| IDFC | 9.25% Onwards * | Claim Claim |
| Standard Chartered | 9.25% Onwards * | Claim Claim |
| PNB Housing Finance | 9.25% Onwards * | Claim Claim |
| HSBC | 9.45% Onwards * | Claim Claim |
| Kotak Mahindra | 9.50% Onwards * | Claim Claim |
| LIC Housing Finance | 9.50% Onwards * | Claim Claim |
| IDBI | 9.55% Onwards * | Claim Claim |
| L & T Finance | 9.60% Onwards * | Claim Claim |
| INDIAN BANK | 9.70% Onwards * | Claim Claim |
| Deutsche Bank | 9.75% Onwards * | Claim Claim |
| Godrej Housing Finance | 9.75% Onwards * | Claim Claim |
| Bank of Baroda | 9.95% Onwards * | Claim Claim |
| State Bank of India | 10.00% Onwards * | Claim Claim |
| MAHINDRA FINANCE | 10.00% Onwards * | Claim Claim |
| HDFC | 10.05% Onwards * | Claim Claim |
| Bank of India | 10.10% Onwards * | Claim Claim |
| Karur Vysya Bank | 10.20% Onwards * | Claim Claim |
| CANARA BANK | 10.30% Onwards * | Claim Claim |
| Punjab National Bank | 10.40% Onwards * | Claim Claim |
| Bank of Maharashtra | 10.45% Onwards * | Claim Claim |
| Union Bank of India | 10.45% Onwards * | Claim Claim |
| HDB financial services | 10.50% Onwards * | Claim Claim |
| Axis Bank | 10.50% Onwards * | Claim Claim |
| Axis Finance | 10.50% Onwards * | Claim Claim |
| ICICI | 10.85% Onwards * | Claim Claim |
| UCO Bank | 10.85% Onwards * | Claim Claim |
| Aditya Birla Finance | 10.99% Onwards * | Claim Claim |
| Federal Bank | 12.60% Onwards * | Claim Claim |
| SMFG India Credit Company Ltd. | 13.00% Onwards * | Claim Claim |
| Central Bank of India | 13.75% Onwards * | Claim Claim |
| Avas Finance | 14.00% Onwards * | Claim Claim |
| Sundaram finance | 14.00% Onwards * | Claim Claim |
| MUTHOOT FINANCE | 14.50% Onwards * | Claim Claim |
Understanding Mortgage Loan Rates
A mortgage loan is a secured loan taken by individuals or businesses. In this type of loan, the borrower pledges a property (such as a house, land, or commercial building) as collateral to the lender. These loans are typically used for purchasing property, refinancing existing loans or renovating a property. Mortgage interest rates play a crucial role in determining the total cost of the loan.
The interest rate for mortgage loans varies across financial institutions and depends on several factors, including the type of property, loan amount, tenure, and the borrower’s credit profile. Currently, mortgage loan rates in India range from 8% to 14.5%, but the rates fluctuate based on market conditions and economic factors.
Key factors affecting & influencing Mortgage loan interest rates:
1. Credit Score:
A higher Credit score typically results in a lower mortgage interest rate, indicating lower risk to the lender. Lenders use your Credit score to gauge your risk as a borrower. A higher credit score indicates a lower risk of default, so you are more likely to qualify for lower interest rates. Conversely, a lower Credit score could result in higher mortgage loan rates due to the perceived risk.
2. Loan Amount & LTV (Loan-to-Value Ratio):
The LTV ratio plays a significant role in determining the mortgage loan rates. The LTV ratio is the loan amount compared to the property’s appraised value. A lower LTV ratio indicates that the borrower has more equity in the property, which typically results in a better interest rate, as the lender perceives lower risk.
3. Type of Interest Rate:
Mortgage loans are available with either a fixed rate or a floating rate of interest:
- Fixed Rate: The mortgage interest rate stays fixed for the entire duration of the loan, ensuring consistent monthly payments.
- Floating Rate: Mortgage loan rates fluctuate based on changes in benchmark rates, such as the MCLR (Marginal Cost of Funds-based Lending Rate) or the Repo Rate. Borrowers can use a mortgage loan calculator to compare how fixed and floating rates may impact their repayments.
4. Loan Tenure:
The loan’s tenure can influence the mortgage interest rate. Shorter tenures typically attract lower rates, while longer tenures may have slightly higher rates.
Mortgage loan ROI insights:
Economic Factors:
Mortgage rates are often tied to the broader economy. The Central Bank of India, RBI, influences repo rates by adjusting benchmark interest rates to manage inflation. Higher inflation typically leads to higher mortgage interest rates, while lower inflation keeps mortgage loan rates more manageable.
The demand for bonds (which lenders use to raise funds) affects interest rates. If there’s a high demand for bonds, mortgage interest rates tend to be lower, as lenders can borrow more cheaply. In contrast, if bond demand drops, lenders may raise rates to compensate for higher borrowing costs.
Down Payment:
A higher down payment (e.g., 20% or more) reduces the lender’s risk, often resulting in a lower mortgage interest rate. A smaller down payment, particularly less than 20%, might lead to higher interest rates or the requirement for private mortgage insurance (PMI), which adds to your monthly costs.
Geographical Location:
Rates of loans against mortgages can vary depending on where you live. Areas with higher demand for housing and more competition among lenders may see slightly higher rates, while less competitive regions could offer the lowest mortgage rates.
Loan Features:
Loans with fewer restrictions, such as no prepayment penalties or flexible terms, may carry slightly higher mortgage interest rates. Lenders charge higher rates to offset the risk of you paying off your loan early or refinancing.
Market Sentiment:
If consumers are optimistic about the economy and housing market, demand for mortgage loans increases, pushing mortgage loan rates up. If economic uncertainty looms, lenders may lower rates to entice more borrowers to lock in loans.
Lender Competition:
Lenders often run promotional periods with reduced rates or zero processing fees. It’s worth shopping around, as different lenders might offer better deals, especially during peak selling seasons or festive periods.
How are mortgage loan interest rates decided?
Mortgage loan interest rates are primarily decided based on:
- Credit score and financial history.
- Loan-to-Value (LTV) ratio.
- Type of property you’re purchasing.
- Loan amount and repayment tenure.
- Market conditions and prevailing RBI policies.
FAQs
A mortgage loan interest rate is the percentage charged by a lender on the amount borrowed for purchasing, refinancing, or securing a property. It reflects the cost of borrowing funds for property ownership.
It depends on your preferences:
- Fixed Rate is ideal if you prefer predictability and want to lock in your EMI throughout the loan tenure.
- Floating Rate might be suitable if you’re looking for lower initial rates and are open to rate changes based on market conditions.
To obtain the most favorable mortgage loan interest rate:
- Maintain a high credit score (750+).
- Opt for a shorter loan tenure, which can result in lower rates.
- Make sure you have a consistent income and maintain a low debt-to-income ratio.
- Compare rates from various banks and lenders before applying.
If you have a floating interest rate, the rate can change during the loan tenure based on the benchmark rate changes by the RBI or changes in your lender’s internal rates (like MCLR). On the other hand, with a fixed-rate loan, the rate will remain unchanged throughout the loan period.
Missing an EMI can have serious consequences. You may incur penalty charges, which can negatively affect your credit score. If you cannot make the payment, contact your lender immediately to discuss options like rescheduling or loan restructuring.
Many borrowers refinance their mortgage loans to take advantage of lower interest rates or better terms. However, refinancing may involve processing fees, prepayment charges, and other costs, so it’s important to evaluate whether refinancing is financially beneficial carefully.
The maximum tenure for a mortgage loan usually ranges from 10 years to 30 years, depending on the lender’s policies and your age. Longer tenures generally come with lower EMIs but higher total interest costs over the loan’s life.
Yes, most lenders allow mortgage loan prepayment, either partially or fully. Prepaying reduces the principal outstanding and, therefore, the interest burden. However, some lenders may charge prepayment penalties or impose conditions, so it’s best to confirm with your lender.
Some mortgage loans may come with processing fees, documentation charges, valuation fees, legal charges, and prepayment penalties. Always read the fine print and clarify hidden charges before signing the loan agreement.