With interest rate hikes likely in 2022, keep loan-to-value at minimum

Don't opt for a fixed-rate home loan even though rates have hit the bottom

Home sales rose sharply once the economy opened up after the second wave of Covid-19, and approximately 237,000 units were sold in the top seven cities in 2021, up 71 per cent year-on-year (YoY), according to Anarock, a real estate consultancy.

One factor that provided a fillip to sales was low interest rates on home loans. However, interest rates are likely to rise in 2022. Here are a few factors potential borrowers now need to keep in mind.

Assess repayment capacity

Begin by assessing your loan repayment capacity. “Home loan lenders prefer an applicant’s total EMI (equated monthly instalment) obligations,