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Which home loan would you prefer at this point of time?

Which home loan would you prefer at this point of time?

Which home loan would you prefer at this point of time?
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The home buying procedure involves one dilemma after another. So, after much hard work, you have decided which home to buy and label it as your dream home; the next challenge you face is what are the terms and conditions that you want to sign for the home loan that you are opting for. The home buyers who are taking the home loan are generally confused between fixed rates and floating rates.

The confusion usually stems due to the fact that people do not know the exact differentiation between fixed rates and floating rates. The basic difference between the two is the interest rate. A detailed differentiation is as follows:

Fixed rate Floating rate
Loans available with a fixed rate of interest for a given period of time. Loans available with a floating rate of interest for a given period of time.
It can be under a pure fixed rate loan i.e., the interest rates would be fixed throughout the tenure and would not be affected by the fluctuations in the market It is according to the prevailing market rate of interest. It changes at periodic level.
It can be fixed for a certain period, for example, three or five years, and after the time period, the interest rate could be associated with the ongoing interest rates. Typically, a floating rate is reviewed once every quarter.

Although, the two forms of home loans are completely opposite to each other, there is not much difference in their takers. According to a poll conducted by makaan.com, while 57% of home buyers prefer floating rate at present, 43% home buyers prefer fixed in interest rate while taking a home loan. It is worthwhile to notice that even in the ever changing interest rates and the economy experiencing inflation on a regular basis, a great number of people are ready to risk floating rate of interests.


Buying a home is one of the most significant financial investments that one ever makes; therefore, it is only advisable to do a proper market research and survey prior to finalizing anything. For more of such poll reports and to cast your vote in a poll, visit: http://makaaniq.makaan.com/ .

Last Updated: Mon Feb 25 2013

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