A home loan is a secured debt, but it comes with a longer tenor.
Hence, even though opting for a longer tenor means paying lower EMIs, it leads to payment of higher home loan interest rates charges.
It is where borrowers want to avail themselves of the lowest home loan interest rate.
If you want to avail of a reduced housing loan interest, here is a quick post!
1. Go for a smaller tenor
A smaller home loan tenor may force you to pay increased EMIs. But it also means that you will end up saving on home loan interest rates. You will also be free from debt faster. Thus, if possible, try going for a shorter tenor.
2. Make prepayments
Active home loan customers can make time to time repayments during the tenor. In turn, it can bring down your repayable amount and also the interest rate charges.
3. Shop around
Before applying for a housing loan, you should compare all available deals online. You can do that on a third-party website and pick a deal matching your preferences the best.
4. A home loan balance transfer is an option
You can also transfer your loan account to a lender offering a lower rate. It is known as the home loan balance transfer. Opting for this can also let you avail of a higher top up loan amount at a reduced rate and a longer tenor. You are also free to use the top up loan amount for anything as per your needs.
If you can follow these discussed tips, you can easily enjoy lower home loan interest rates and pay reduced EMIs.
Read Also: Know How Home Loan EMI is Calculated: The Factors, The Formula
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