Home > Forum > Hyderabad > Home Loan > How to ensure home loan turn out to be expensive over the duration of the loan?
How to ensure home loan turn out to be expensive over the duration of the loan?
Q: I am planning to buy an apartment and will apply for home loan. How to ensure that the home loan that I take does not turn out to be too expensive over the duration of the loan?
Interest rates of home loans depend on many factors such as availability of money in the market (liquidity), inflation and monetary policies. If you opt for a floating rate loan, your home loan instalments will keep changing with fluctuations in interest rates. In case of fixed loan rate, the interest rate will be fixed over the duration. You can inquire about the lender's base rate which is based on Reserve Bank of India guidelines. Banks change their base rates once in every quarter and your interest rates might go up or down. You can take any decision likewise.