How a joint home loan is beneficial

In contrast to floating rates, fixed rates are expected to remain the same for the entire term of the loan. Fixed rates are generally 0.5-1.5 percentage points higher than the prevailing floating rates.

Though fixed home lone rate  are disbursed at a higher rate to compensate for the risk of rate fluctuations, several banks offer a fixed interest rates only for a specified duration, after which the loan rate is realigned with the prevailing market rate. For example, fixed housing loans offered by Punjab National Bank is disbursed at rates higher by a fixed margin as compared with floating rate of similar duration and remains the same for five years. The interest rate is revised every five years and the reset rate always remains higher than the prevalent floating rate by the fixed margin.

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