Are you soon going to apply for a Home Loan so that you can easily purchase a home of your dream for your family and repay in easy EMIs over years?
Congratulations that you have decided to avail a housing finance to buy a home! A majority of Indians always want to buy a home but have some financial constraints that prohibit them.
However, modern-finance has enabled even the salaried middle-class to fulfil their wish of buying a home with the option of House Loan.
Nonetheless, even though you can avail a Housing Loan if you have the required Home Loan eligibility, but you also have to pay the Housing Loan interest rates. Yes, since a Housing Loan is a long-term obligation and not considering lower Home Loan rates can let it affect your monthly income for long.
Thus, you should ensure to get the lower Home Loan interest rates so that you don’t feel the burden of serving a loan on your head. Here are some handy tips to help you avail the lowest interest rates.
- Extend the Tenor
When you decide to repay the Home Loan over a longer tenor, the cost of your loan gets distributed into a large number of months. As a result, the interest cost and the principal gets distributed in longer months and helps in reducing the Home Loan interest rate.
- Put Down a Larger Down Payment
The more you put as the down payment, the lesser Housing Loan interest rate you will need to pay to your lender. It can help you as generally you need to put 20% of the home cost as the down payment which means you need to manage only 80%. What you can do is – pay 30-40% as the down payment so that you only have to repay 60-70% of the principal which means enjoying the lowest interest rates. You will be paying lower Home Loan EMIs which won’t affect your monthly budget.
- Make Some Prepayments
During the course of your Home Loan tenor, if you get some surplus money from any source, you can use the money to make some repayments and reduce the interest. Leading lenders do not charge any amount for making prepayment towards your housing loan.
- Go for Home Loan Balance Transfer
If you are already having a Home Loan account and unable to opt for the lowest interest rate, you can opt for the Home Loan balance transfer facility. Yes, you can do this by transferring your Home Loan account from your existing lender to a lender offering lowest rates. You will need to pay some charges to your existing creditor. Along with the balance transfer, you can also enjoy a top-up loan of up to Rs.50 lakh at a lower rate and longer tenor to cover other needs.
The Bottom Line
Managing the lowest Home Loan interest rate is easy if you can implement the discussed tricks. Now that you know how to handle the interest part, you can apply for a housing loan online and go ahead towards purchasing your dream home. All the best!