4 Solid Ways to Reduce Your Home Loan Burden

Living in your own is a lifetime dream for most adults, especially once they reach a certain age and start earning a considerable sum. Though the real estate industry has been down in the last few years, industry insiders are expecting a revival in the coming months. It is expected that the property prices will take a turn for the better, and if you are interested in investing in property or buying a flat to live in, you must opt for a home loan. You should also be aware of how to reduce your home loan burden.

• Increase your EMI Percentage

The best way is to increase your EMI by 5% every year so that you can save yourself from paying interests that are almost as much as the actual loan amount.

• Add Additional EMI 

Instead of paying just one EMI a month, make it two whenever possible, and if you manage six instalments a year, it could help reduce the overall repayment tenure and interest rate.

• Transfer Your Loan

A home loan balance transfer is considered a reliable way to a lender who offers reduced interest rate and processing fee. This way, you can complete your home loan much quicker and save lots of cash on the way.

• Avoid Committing on Majority of Your Income 

The common mistake most people do is, they pay 50% of their income as EMI which is a wrong way to handle home loans. Even when you opt for a home loan balance transfer, find ways to keep it below 50% so that you have enough fund to meet your day-to-day requirements comfortably.

Also Read: Home Loan Balance Transfer: How is it Useful?