A home loan comes with a lower home loan interest rate as it is a secured debt. But since its tenor is usually longer, lenders have to deal with higher home loan rates.
If you want to apply for housing finance and avail of the best home loan interest rate, here is a post to go through!
1. Go for a shorter tenor
A shorter will mean paying a higher home loan EMI but enjoying bigger savings on the payable home loan interest rate charges. If you find paying bigger EMIs taxing on your outlays, you can go for prepayments with a longer tenor.
2. Opt for a longer tenor with prepayments
Selecting a longer tenor will keep your EMI amount lower, but you will need to manage a higher home loan interest rate. But you can always reduce your loan burden after making prepayments during the tenor. You should always check the prepayment charge before doing that.
3. Compare all available home loan deals online
You can also shop around and check out all available deals on a third-party website. This way, you will be able to pick the best deal available in your city, matching your needs and repayment aptitude. You can avail of this facility for free and 24x7.
Besides this, if you work on your CIBIL score and keep it 750 and more, you can avail of lower home loan rates. Applying when you are young and with a consistent employment record of at least 3 years can also help you get the best deal.
