September 2021 - Realtech Nirman

Fixed OR Floating: A Sneak Peek Into Home Loan Interest Rates

Buying your desired flat in Rajarhat can become one tiring & complex process – if not having the required awareness about the entire structure of the housing loan scheme.

And, one prime aspect to learn in this context is about:

Kind of interest rate suiting your need

In the Indian market, two options come up to this end,

♦ The Fixed Interest Rate and Floating Interest Rate

Now, as for

Which Home Loan Interest Rate Will Be Ideal For You

learn that

A Fixed Rate of Interest:

♦ Remains constant throughout your loan tenure, regardless of market price fluctuations or changes in Repo Rate

♦ Is perfect to pursue when the EMI scheme is comfortable for you

♦ Helps you to plan a long-term budget for daily & essential expenses after taking a home loan, as you get to know the exact laps of EMI for the entire period

But Be Aware –

◉As unchangeable even when the market rate is higher, fixed interest rates are generally 1.5% to 2% higher than their floating counterparts

◉ Once opting for a fixed rate, you cannot avail any benefit of decreased interest rates – as & when such a market situation crops up

◉ When the market prices are higher than the conventional level, approval for a fixed rate of interest can become difficult; since banks will doubt your capacity of repayment at a higher rate

One Spoiler Alert

Some fixed-rate home loans stay fixed only for certain periods.

Basing on the loan tenure, it can be that your fixed interest rate stays valid for certain years & automatically converts into a floating interest rate loan thereafter.

When that happens, know that the fixed-rate might get revised affecting the EMIs in the long run. Henceforth, as a ground-rule, give a thorough reading to all the T&Cs while getting a home loan to buy flat in Rajarhat.

As For The Floating Rate of Interest

pursue it, when you

◉ Are confused about interest rate fluctuations & prefer to go with the market trend

◉ Wish to save on the overall interest rate shortly; since floating-rate loans are marginally lower than fixed-rate loans, thus reducing your loan cost

◉ Have a backup plan of repaying the loan before the designated tenure & desire to avoid prepayment penalties. The RBI has banned all sorts of prepayment fees in case of the floating interest rate.

However, Realize That

As completely dependent on the market’s flow, floating interest rates are-

Highly unpredictable, possible to increase to an extent that it would become slightly uncomfortable for a borrower to pay their EMIs.

This unpredictability also goes to affect financial institutions, which end up charging higher premiums than the conventional benchmark

Which One To Go For?

The answer to this question solely depends on your financial health & whether predictability or unpredictability is your taste. Still, some factors can help you make a decision:

• Calculate cautiously the EMIs of 2-3 loan schemes you have shortlisted – basing upon both the fixed & floating rates

• Weigh that with own monthly income range & acknowledge the gap

• Can follow the expert advice of Fixed Rate for the 40s & Floating for those in their 20s

• Split own loan between fixed & floating by a 60:40 ratio

We wish you find the apt home loan as per current interest rates & experience the smoothest home buying journey.

As for picking a suitable flat in Rajarhat, connect to Team Realtech anytime & from anywhere.

Waiting to serve you.

4 Sure Hacks To Build One Good Credit Score For Home Loan

Plan to possess own apartment in Newtown in the coming 1-2 years? Then surely you are focusing on own monthly credit score from now on, right?

The importance? Well, a literally ‘good’ credit score –

» With guarantee speeds up your home loan approval

» Along with giving you an upper hand during negotiations with the lender over the rate of interest

» And builds an overall equation of trust between you & the bank/ lending organization

Now comes up the question of what is a ‘literal good’ credit score concerning home loans.

Well, in our country, the Credit Information Bureau (India) Limited or CIBIL stays responsible to set the yardstick & as per its rule:

♦ Anything above 700+ is considered fine by both banking & private lenders for approving housing loans; while 750 is the ‘ideal’ mark for quick sanction & lower interest rates

After covering all the essential expenses & significant family responsibilities, it’s next-to-impossible for you to maintain such a score

Stress not. Just draw your attention & read through-

The Pro Guide Of Good Credit Score Maintenance

# 1 Use The Card Wisely

A stitch in time saves nine. This good old English phrase turns most truthful when it comes to building a good credit score.

To reach a cibil score above 700 & apply for a home/property loan soon, you must begin from today. And, as a first step:

Get into the habit of not using own credit card too much.

What financial experts suggest is that of-

Keeping monthly credit card expenses to 30% of the limit
Increasing the card’s limit as much as possible to thus maintain this percentage
Avoiding the disturbing cycle of pending credit card bills for not only preventing late payment penalties but also the issue of a lower score; always try to pay at least 5% of the outstanding dues

to thus progress towards the 700 mark.

# 2 To Want Another Card Or Not

Decide by one most honest analysis of own needs. Because –

An unwanted number of credit cards with unpaid bills related to each eventually draws your image as a credit chaser in front of banks & lending bodies. This, as an effect, burdens your life with a debt heap & lowers the scope of good score maintenance.

So, ration own credit, if you want to become one good scorer. Refrain from high-cost purchases via credit card & as a ground rule-

» Apply for a new one only when you have cleared all previous payments & are confident about repaying the dues from the new card.

Also, follow one finance trick of –

♦ Applying for a new card to a bank, whose housing loan scheme you wish to avail yourself of. Since if you can repay perfectly, approval chances heighten simultaneously.

#3 Keep A Regular Check

You have a busy schedule, true. But, when to seriously reach a credit mark above 700, a bit of effort is required as well.

One aspect of that effort is reviewing own score frequently, for

♦ Many times your record may show incorrect or out-of-date information – in effect decreasing score.

Start utilizing a reputed digital credit score checker & keep an authentic track of own progress. Realize the stimulation thus gained.

Some are cautious but not difficult, are they? And it’s all for possessing your sweet home. So, start pursuing the tips without wasting time.

As for selecting your own dream flat from apartments in Newtown, get in touch with Realtech Nirman. We wait to serve your

Get in touch whenever wishing.

Builder & Property Consultant: Top Highlights To Learn Of Each

USD 1 Trillion. Yes, this is the exact value the Indian real estate sector is predicted to amount to – by 2030; along with a solid 13% contribution to the country’s GDP within 2025.

And, if to speak of present, even amidst the COVID-19 issue, the industry stands as the second biggest employment generating field across the metros & villages.

One prospective picture of growth, indeed.

So, right in this context, let’s get to know a bit more about the sector’s two prime pillars:

♦ The Builders & Property Consultants

♦ both of whose individual aptness & professional bonding make sale of property, such as Flats in Kolkata , happen continually around the nation & irrespective of the pandemic – thus strengthening the industry’s trillion-dollar growth.

Ready? Draw your attention now:

Builders Or Developer Builders

prevail as all-encompassing establishments, who, from-

» Buying the land to preparing it for construction (cleaning, mowing, etc)

» Surveying the piece of land & taking care of all other legal ends

» Designing the home or apartments to executing the very construction with chosen materials

» And the required sanitation & plumbing work in & around the construction

cover all the necessary aspects.

In past, builders & developers did exist as separate entities, when the former only took care of the house or building’s construction upon a plot prepared by a developer by following all the lawful & hygienic protocols.

However, with the idea of nuclear families increasingly replacing the joint family concept in country & demand of own home rising thereby:

» Nowadays, developer builders are the firms most commonly found – constructing your dream apartment from literally scratch & meeting the growing demand to perfection.

And, complementing the work of these very firms, come up

The Property Consultants

as professionals committed to helping a buyer find their own home of desire & bring in to real estate builders the best crust of potential clients.

As per a recent national study, these real estate consultants boost over 75% of transactions happening in the construction industry.

But what makes possible such an impact?

Well, the essential & knowledgeable help people are always in search of – while buying a home or apartment.

From pros & cons about a particular property to each legal step involved in its purchase – a property consultant guides buyers throughout the journey – including participation in the communication between a buyer & the builder.

They dedicate time to understand a particular customer’s needs (budget, long-term goals, no of family members) & offer them personalized choices of houses or flats.

This personalized approach of consultants, in turn, also results profitable for developer builders – since they get to know exactly what to show to which customer; therein heightening the scope of sale from every site visit.

The Essential Union

The present trend of real estate companies designing custom-built residential complexes with urban facilities, landscaped gardens & showcasing 360-degree views of those via online advertising can very well be contributed:

♦ To the research of estate consultants about the tastes of the Gen Z customers of home buyers – who wish for customized homes, green living & total truth.

No wonder, as a result of this working together, India’s Global Real Estate Transparency Index rank went up to 34 in 2019.

As one of Bengal’s top residential developers, Realtech Nirman commits to this transparency & vows to heighten it by offering every buyer his/her true sweet home.

We are only a click away!

How To Get The Best Home Loan Scheme For Buying Flats In Rajarhat?

Is it time to avail of a home loan & thereby take the prime step towards own dream house?

Fulfilling one’s own wish for a Flat in Rajarhat depends much on this, right? And you are already feeling stress over –

♦ Which rate of interest will be apt?

♦ Will I be able to manage the EMI plan?

& many alike questions in mind?

Push aside all confusions & draw own attention to the –

Proven Hacks Of Choosing A Fit Home Loan

#1 Rich Research

Possessing the apartment of desire will be one exclusive event of your life. So, preparation for that too requires special effort from your end, right?

Then gear up to:

◉ Check websites of reputed banks & finance companies for the latest home loan packages

◉ Gain first-hand information from a peer or relative about a particular plan of a particular lending body availed by the one

◉ Post a query at an online discussion platform like Quora by clearly mentioning the credit amount you plan to get; read every reply thoroughly & make a note about the pros & cons people are highlighting about certain schemes & lending organizations

◉ Keep an eye upon the fluctuating interest rate on housing loans on a daily basis

past this stage & when you are weighing between 3-4 plans get set for-

#2 Calculating Schemes Correctly

Another most important endeavor to fulfill – if to:

• Have the best possible bargain over a home loan

• And ensure that your essential monthly expenses are not compromised given to a high rate of interest

Keep a sufficient amount of time in hand & begin comparing the schemes you have shortlisted through a good digital loan calculator.

Cross-check every single element of each scheme beginning from:

♦ Interest rate to Processing Fee & Repo Rate

♦ Eligibility criteria to Tax cut-offs & Cash-Backs (if any)

Collect all the information together in a diary or Excel Sheet.

With the entire picture clearly in front, see how swiftly your mind picks the plan most suitable for you.

once deciding upon a definite home loan package, it’s the hour to-

# 3 Play Smart

And what’s that? Utilizing certain loan-specific perks to lower the interest rate & quicken the approval process.

As advises one customer-voted best bank for home loan:

♦ Try taking a joint loan with a female family member, since most top-ranking banks put forward noticeable reduction (as much as 50 basis points) in interest rates & remission of processing fees – when, in a Co-Loan scheme, one applicant is a woman

♦ If having a credit score above 700 or even more, bargain to the limit possible for lowering the rate of interest & speeding up approval

♦ Mention to the loan officer about the online platform from where you learned about the scheme– because discounts for digitally-referenced home loans often stay available at both banking & private lending organizations

# Also Attempt

To pick an EMI plan where the tenure is not higher than 20 years

Clearing any existing bank debts & thereby rising own FOIR or Fixed Obligation to Income Ratio to strengthen approval of your desirable loan plan

Is confidence in gaining an apt home loan plan now replacing your confusion? Why wait & not take the necessary step?

As for selecting your own sweet home among the exclusive Flats in Rajarhat, Realtech Nirman stays ready to guide you perfectly.

Reach us when the time is relevant for you.