Why choose a Floating Interest Rate for home loan You can go for a floating interest rate for your home loan when you apprehend that the rates might decrease in the future, thereby, reducing the total cost of the home loan. If you are looking to save a little in as floating rates are usually set 1% to 3 % lower than the fixed interest rate offered by the same lending organisation This type of home loan interest rate usually suits people who do not possess enough insight regarding the market and, thus, want to stick to the market rates home loan flat loan , mortgage loan housing loan, loan against property , building construction loan , mortgage loan process