Home loan rates on the rise! Should you opt for a fixed-rate loan?
The record-low home loan interest rates enjoyed by the borrowers in the last couple of years have started to reverse and rise again amid a 140 bps hike by the Reserve Bank of India (RBI) since May. The repo rate now stands at 5.40%, higher than the pre-pandemic level of 5.15%. Following the suit, many banks including ICICI Bank, Canara Bank, Punjab National Bank, etc., have already hiked the home loan interest rates. How does the rise in interest rate affect home buyers? Should they delay their homebuying decision?
Atul Monga, CEO and co-founder of BASIC Home Loan says for those sitting on the fence, it is still a good time to buy the property as the rates are further going to increase. Monga also explains why opting for a fixed interest rate option of a home loan may not be a viable idea in the rising interest rate scenario. He explains an effective way to reduce your home loan EMIs.