What is the interest rate for a home extension loan?

The interest rate applicable to a home extension loan can vary significantly from lender to lender, but generally ranges between 8 to 12% p.a. It is important to note that there is no standard universal rate for these loans. The interest rate you ultimately get will depend on several factors:

• Overall Credit Score and Credit History: Borrowers with higher credit scores can avail rates on the lower end of the range. Those with poor credit may get higher interest rates.
• Income Levels and Repayment Capacity: Higher and stable income will lead to better rates.
• Loan Amount: Bigger loan amounts may qualify you for lower rates with some lenders.
• Loan Tenure: Shorter tenures often come with lower rates.
• Type of Interest Rate: Fixed or floating - and associated features play a significant role in determining the interest rate.
• Additional Factors: Includes your relationship with the financial institution, location, collateral, etc.

Given how many parameters impact the interest rate, it is advisable to compare options from multiple financial institutions before deciding on a loan.