Hence, opt for floating rates if you are going for short tenure home loans as interest rate fluctuations will not matter much. It is a good option to go for a fixed loan if the difference between floating and fixed rate is 1 percent or more, or if the interest rate is in single digits. NAV, dividends, returns, portfolio - complete track record of DHFL Pramerica Floating Rate Fund. Download free reports. From India's independent mutual fund research house. Pre-payment Penalties: If the housing loan is under floating interest rate and the loan is prepaid through any source, no prepayment charges shall apply. If the Housing loan is under fixed rate, the pre-payment charges shall apply except in the cases in which the customer is paying out of his ‘Own Sources’.