Which Bank Has The Lowest Housing Loan Rate In Market?
Before we compare and show you all the housing loan packages ranked in order of lowest average rate in 1st 3 years, please select the type of loan you need :
Floating or variable rate housing loan is where the interest rate is pegged to usually some market indices like money market Sibor or Sor rates plus a small mark-up also known as a spread. This spread is usually lower in the initial 3 years to drive take up for the package and gets reverted to a long-term spread typically at 1.25% for most banks.
Fixed rate housing loan is one where the interest rate is fixed at a certain rate (to give certainty and hence peace of mind for loan repayments) but only for the initial few years (usually 2-3 years but sometimes 5 years but at a higher fixed rate). After the “fixed rate period”, the interest rate will also get reverted to a floating rate based on a higher spread just like the variable rate mortgage.
Note that usually the same package is offered from the bank be it for new purchase or refinancing just that legal subsidy is not provided for new purchases and only selected banks offer it for refinancing. Get a free copy of our Housing Loan Comparison Report for all the finer details!
To understand more on what else to look out for in a home loan, go to our Home page.