Home loan rates have moved a lot in the last 18 months - and I think a lot of buyers are making a critical mistake by not locking in now before the next RBI cycle.
Here's my current read on the situation (I'm tracking 3 properties right now in Noida):
Current floating rates from major banks: - SBI: 8.50% onwards (EWS/LIG), 8.85% general - HDFC: 8.75% onwards - ICICI: 8.70% onwards - Kotak: 8.65% onwards (but processing fees are higher)
Key things I wish I'd known before taking my first loan:
1. MCLR vs Repo Rate linked - always go repo-rate linked (RLLR) in a falling rate environment. When RBI cuts, your EMI drops automatically. MCLR has a reset lag.
2. Balance transfer math: If you're 3+ years into a loan, a 50bps difference often isn't worth the hassle of transfer. Calculate the actual saving after fees.
3. Pre-payment strategy: Tax benefit on principal (Section 80C) is capped at ₹1.5L anyway. Once you hit that, prepaying aggressively makes more sense than the tax arbitrage.
4. Co-applicant benefit: Adding your spouse increases eligibility by 30-40% and both get tax deduction on interest (Section 24 - up to ₹2L each = ₹4L total household benefit).