Fixed or Floating Interest Rates, which is Better for Home Loans?May 25, 2024

Fixed or Floating Interest Rates

For those who are planning to buy a flat in Trivandrum, its normal to avail of a home loan to cover the initial purchase of their dream home. And when it comes to choosing a home loan, an important factor to consider is the interest rate – whether its fixed or floating. This comes with its own advantages and disadvantages, and here’s a look at some of them:

Fixed Interest Rates

The main characteristic of fixed interest rates is that it remains the same throughout the loan tenure. Knowing your exact monthly payment helps you plan your budget better, both in the long and short term. It also reduces the instability of rising interest rates in the future. Its advantageous to opt for this when the interest rates are on the lower side and you can lock in the lower rate throughout the tenure. The downside to this is that when the market rates decline, those with fixed interest rates do not get to benefit. Another disadvantage is that the initial downpayments are on the higher side with fixed interest rate loans.

Floating Interest Rates

Also known as variable rates, floating interest rates are linked to market conditions and typically have lower initial monthly interest payments as compared to fixed interest rate loans. This results in early cost savings, with borrowers benefiting from lower monthly payments. Though this can be considered an advantage, there is always the risk of rising monthly payouts in case the market rates rise, leading to a strain on the borrower’s finances. This unpredictability can challenge the borrower’s monthly budgets if they are unprepared for rate hikes, especially if the interest rates climb substantially.

Finally, the choice between fixed and floating rates depends on several factors. It hinges on market outlook over the loan’s tenure, the borrower’s financial stability, as well as their ability to withstand risky market fluctuations. Fixed interest rate loans are ideal for those averse to taking risks, and prioritizing financial stability over unpredictability – especially if the interest rates are expected to rise. Floating rates, on the other hand, are ideal for those who are comfortable in taking risks in market conditions that are expected to remain stable or decline further.


Related Projects

A few of our inspiring projects

Apartments in Trivandrum

Being the state political capital, an educational hub as well as home to Kerala’s largest and rapidly-expanding IT hub, Artech has realized the growth potential of Trivandrum as a prime spot for real estate investment. Artech builders in Trivandrum offer a number of lavish and eye-popping apartment projects located in classy niche areas to inspire you.

Apartments in Thrissur

The city built around the base of a 65-acre hillock is steeped in rich cultural and spiritual history. Aside from being known as the cultural hub of Kerala, Thrissur is also known as a major business center. Artech offers Thrissur, one of its finest creations to-date, the Artech Gateway, featuring exclusive lifestyle apartments.

Apartments in Kollam

Located on the banks of the scenic Ashtamudi Lake, this ancient city dating back to the biblical times, has a strong commercial reputation. The verdant beauty of this city also attracts many people to set-up homes here. As flats in Kollam are in great demand, Artech Realtors have a number of luxurious projects offering superior homes with amazing blue vistas to its residents.

Apartments in Kottayam

Kottayam has always been at the forefront for education and literacy. Aside from this, it’s a peaceful town that thrives on commerce. Artech Realtors have given Kottayam their first taste of high-end luxury living with Artech Rio. The unending views of the surrounding greenery, the meandering river and outstanding amenities makes life in these classy apartments one-of-a-kind.

Apartments in Thiruvalla

Thiruvalla, which has earned the moniker the ‘Land of the NRIs’ is situated on the banks of the Pamba and Manimala rivers. With a paucity of suitable homes for the cream of the society, there was a glaring need for luxury flats in Thiruvalla. The blissful Artech Kaazhcha apartments offer an inspiring mix of high-end comfort and luxury.



The information provided on this website is meant for general guidance. Though we have taken utmost care on the accuracy of the contents, the customer should make an autonomous assessment of the contents. However, the prospective buyers should rely upon the terms and conditions of the sale and construction agreement between the Builder and the Client.

The visuals of the projects symbolize artistic impression only. The information contained herein including the fittings, finishes, features, floor size and color etc. in the visuals are subject to change. However, the plans & specifications indicated in the Builder and Client agreements are final and we have not authorized anyone to make any oral commitments or promises on our behalf in regard to the plans and specifications of the apartments/projects.

For any clarification please feel free to call +91 9847 600 600 or walk into our offices. Our representatives will always be at your service.