Do you want to incorporate ways so that you can make your existing or ensuing Home Loans even more affordable regarding Home Loan interest rates? Read on!
The government of India is keen to roll out homes for all since it has a policy named ‘homes for all by 2022’ and it has fuelled the real estate industry.
Home Loan borrowers are feeling the benefits of the same as leading service providers, and non-banking finance companies (NBFCs) have reduced their Home Loan interest rates.
Yes, Home Loans are available at a rate of 8.35%, and you can further make it even more affordable if you follow some handy tips or steps. Have a look!
Extend your tenor
You can reduce your Home Loan interest rate easily if you plan to extend your tenor. How? It’s because your principal and rate of interest get equally distributed across over a larger number of months. However, even though your Housing Loan EMIs will become inexpensive, you will have to pay more interest on the principal which remains higher.
Increase the down payment
Another significant way to keep your Home Loan interest rates is increasing your down payment. Even though lenders may offer to cover the entire price of your new home, try putting down at least 20% as the down payment so that you have to manage 80%. This is the best method to meet long-tenor credits such as housing loans which comprise of paying back for many years.
Go for Home Loan balance transfer
If you are an existing Home Loan subscriber and analyze that you are paying a higher Housing Loan interest rate than what is available in the market, opt for balance transfer. Home Loan balance transfer helps you transfer your existing Home Loan account to a new lender who is providing a reasonable deal on the Home Loan interest rate. What’s more, Home Loan balance transfer also helps you apply for a top-up loan to the tune of Rs.50 lakh at a lower rate so that you can manage other costs.
Avail the facility of premature repayment
One of the easiest ways to bring down your Home Loan interest rate is by putting down any surplus or bonus amount and opting for a premature repayment. When you get a large amount of money from some sources such as bonuses, selling value out of the ancestral property and more, do it. It’s best to do it during the initial stages of your loan tenor so that your principal could go down. When this happens, it helps you reduce the interest rate on the successive payouts.
The Bottom Line
You just went through some easy-to-implement methods to bring down your Housing Loan interest rates. The best part is that these steps work greatly even if you are an existing Housing Loan subscriber or planning to apply one shortly.
Apply for a Home Loan with leading non-banking finance companies (NBFCs) over the web and avail the benefits as mentioned above. All the best!