Higher interest rates can affect your repayment budget. Hence you can follow the options mentioned below to lower home loan rates and to make your EMIs affordable:
Option 1. Consider opting for balance transfers
Balance transfer facilities enable you to carry your outstanding balance from your existing lender to a new financial company that offers advances at a lower interest rate. While you opt for balance transfers, make sure that you check the charges required. With balance transfers, you can also avail home loan top-ups at an affordable interest rate to increase your monetary backing to cater to several financial emergencies.
However, it is advisable that you choose to opt for balance transfers at the initial stages of your repayment tenor.
Option 2. Choose shorter tenor
Shorter tenor helps in availing advances at lower home loan rates and the total cost of a loan; however, the EMIs are slightly expensive. Therefore, it is best to select a home loan tenor according to your repayment capability.
Option 3. Opt for pre-payment
Pre-paying your loan helps in reducing the principal amount and the following EMIs. Although it does not change the home loan interest rate, but it lowers the remaining principal amount which makes EMIs affordable. Make use of a prepayment calculator before applying.
In addition, consider having a stable source of income and a high CIBIL score for home loan to avail advances at a lower interest rate. Several NBFCs also provide pre-approved offers to their existing customers that further reduce the rates of interest.
