7 Myths That Have Fastened Itself For Home Buyers
Fixed interest rate is better than floating interest rate
Fixed and floating interest rates have their own unique characteristics that work well for different individuals respectively. If one is reluctant to the constant variables of market rates, it would be advisable to opt for home loans with a set interest rate. In consideration to that, home loans with floating interest rates can be burdensome as the rise in market rates will also increases the interest rates of one’s loans. However on the plus side, if the market rates fall, interest rate consecutively will produce a lower EMI.
Your employment details do not matter much when applying for a home loan
Although, this is quite contradictory, banks do require employment details to consider one’s repayment capacity, payment history and the number of years (of employment) before retirement. These factors play a key role in factors determining a loan. It is also advisable to keep the bank updated about events which includes retirement or loss of job, these benefits both as the bank restructures home loan tenure accordingly.
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