**Where Do Rates Stand in 2026?** Following the RBI's repo rate cuts in H2 2025, home loan rates have settled in the 8.35–9.1% range for salaried borrowers with CIBIL scores above 750. Floating rate loans are currently more attractive than fixed rates, given the expectation of further rate cuts in 2026–27. **Top Lenders and Their Rates (Q1 2026)** | Lender | Rate Range | Max Tenure | Processing Fee | |--------|-----------|------------|----------------| | SBI (RLLR-linked) | 8.35–8.65% | 30 years | 0.35% (max ₹10,000) | | HDFC Bank | 8.40–8.90% | 30 years | 0.5% | | ICICI Bank | 8.45–8.95% | 30 years | 0.5% | | Kotak Mahindra | 8.50–9.10% | 20 years | 0.5% | | Bank of Baroda | 8.35–8.75% | 30 years | 0.25% (min ₹8,500) | Government employees and defence personnel typically get 15–25 bps concession. **Documents Required** *For salaried applicants:* - Last 3 months' salary slips - Form 16 for last 2 years - Bank statements (last 6 months) - Identity and address proof (Aadhaar, PAN) - Property documents (sale agreement, builder NOC, RERA registration copy) *For self-employed applicants:* - ITR for last 3 years (with CA attestation) - Business proof (GST registration, partnership deed, or incorporation certificate) - Balance sheet and P&L for last 2 years - Business bank statements (last 12 months) **How to Improve Your Approval Chances** - **Maintain CIBIL above 750**: Pay all EMIs and credit card bills on time for at least 12 months before applying - **Keep credit utilisation below 30%**: High utilisation reduces your score - **Avoid multiple loan applications**: Each hard enquiry slightly reduces your CIBIL score; shortlist 2–3 lenders and apply to them only - **Declare all income**: Include rental income, dividends, and FD interest — it improves your eligibility - **Co-apply with a spouse**: Adding a co-applicant with income can increase the eligible loan amount by 40–60% **Tax Benefits on Home Loans** - **Section 24(b)**: Deduct up to ₹2 lakh per year on home loan interest for self-occupied property - **Section 80C**: Deduct up to ₹1.5 lakh per year on principal repayment (within the overall 80C limit) - **First-time buyers**: Additional ₹50,000 deduction under Section 80EEA (subject to conditions) **Transferring Your Existing Loan (Balance Transfer)** If your current rate is above 9%, consider a balance transfer. Most lenders waive processing fees for balance transfers. The break-even on transfer costs is typically 18–24 months, so it makes sense if you have more than 5 years of EMIs remaining.