A Home Loan may be taken to fulfil the needs of buying a home. Yes, people earlier used to save all life to purchase a Home Loan.
However, the time has changed and so has the methods to help you accommodate your every need, wish and aspiration.
Nevertheless, although a Home Loan does provide a funding option to a borrower, it also adds to the expense as one needs to pay an EMI each month which also consists of interest.
Thus, if you wanted to gain from a Home Loan at a lower rate of interest, you will need to follow 6 easy ways. Have a look!
- Consider availing a Home Loan with an existing lender
Do you already have an existing loan account with a reputed online lender? Try to apply for a Home Loan with the same lender. Why? When lenders see that you are expanding their product selling, they may value the relationship and may offer a good deal on Home Loan interest rates. Yes, your long association with a lender in the past may work out beneficial.
2.Negotiate with the lender
Considering that when you have a good equation with your lender, try to negotiate for a lower Home Loan interest rate. Banks and NBFCs may do so to honour their old customers and take the association further.
3.Go for Home Loan balance transfer
If you are an existing Home Loan subscriber who would like to bring down his/her existing Home Loan interest rate, you can opt for Home Loan balance transfer. A Home Loan balance transfer provision helps you switch the active Home Loan account from the current lender to a new one offering a good deal on the rate of interest. A Home Loan balance transfer service may also help you avail a top-up loan for a maximum amount of Rs.50 lakh at a low rate.
4.Shop around for a good deal
If you wanted to switch your loan to a new lender to get a good offer on Home Loan interest rates or just wanted to check out on some good deal, you need to shop around. Shopping around means going to a third-party website and comparing all the offers provided by top online lenders and then taking a call as to whom to go for!
5.Put down more down payment
Another way to reduce your Home Loan interest rate on the outstanding loan figure is by putting down more than 20% of the total down payment. Why? When you make way for a bigger down payment, you get to pay the interest only on the remaining amount. It will help you save on your monthly expenses as well.
Some lenders may not let you make a bigger part-prepayment because they would be losing out on their interest earning. When you see such lenders, avoid them and even if you have to go ahead, be strict to convince them to let you put a bigger down payment.
6.Use annual bonuses to make more than EMIs payment
During the tenor of the Home Loan and your employment, you will also receive some annual bonuses in the form of cash. Use the same to put or pay more than a regular EMI amount one-two times. Even tins will help you trim down the overall interest-rate up to some extent helping you save. Is not it a good thing to keep saving at least some amount? Of course, it helps!
The Bottom Line
You can always lessen your Home Loan interest rates if you smartly implement some of the above tips as per your circumstances. No matter how much you save, saving at least some money will help you trim down your Home Loan in the longer run. Best of luck!