Will You Switch Banks for Lower Home Loan Rates?

Fixed vs. Floating Rates

Customers with floating rates see this step as a breath of fresh air as this category had witnessed a rise in interest rates in the last few months. So, many customers with floating rates are thinking of shifting to fixed rates. This, however, is not advised as fixed rates are considerably higher than floating rates. On the other hand, people can shift from fixed to floating rates.

Narang says, "Customers with a fixed rate of 12 percent or more should consider switching to a floating rate because in the long run, the RBI may implement rate cuts, which will bring down lending rates."

Kulkarni says, "Such borrowers need to take a look at the rate of interest. If it is lower than the present floating rate, they should continue till the tenure ends and take a call then, as interest rates may soften in the coming days."