Even though a home loan is secured finance, it is a long-term obligation because of its longer tenor.
The longer is the loan tenor; the higher is the payable home loan interest charges.
On that note, everyone wants to enjoy a lower home loan interest rate. Is it possible to avail of a reduced home loan interest rate?
Let’s know in this short post today!
Here’s how you can enjoy a lower home loan interest rate
1. Go for a shorter tenor
The quickly you are able to repay your home loan; the lower will be your overall home loan interest rate charges. It may increase the EMI amount, but you will end up saving on the home loan interest rate in India.
2. Compare all deals online
The next thing to help you enjoy a lower home loan interest rate is to compare all available deals online. You can do that online on a third-party website and pick a deal matching your needs and repayments capacity the best.
3. Pay more as the down payment
No lender will sanction the entire cost of the home you want to buy, and 15-20% will have to be borne by you. It is known as the down payment amount. Hence, the higher is your down payment figure; the lower will be the payable home loan amount. In turn, you will end up paying reduced home loan interest rate charges.
Besides these tips, you can also go for a home loan balance transfer and make a prepayment during the tenor. It is also possible to negotiate for better deals with your lender. All these can also help you avail of a lower home loan interest rate in India.
Read Also: Top Factors which Influence your Home Loan’s Interest Rate
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