Even though a home loan is secured, many borrowers don’t apply for it, considering it is a long-term obligation.
The repayment of the home loan over a longer tenor also means paying higher home loan interest rate charges.
But if you can follow a few tips, you can avail yourself of the lowest home loan interest rate and pay reduced EMIs. Read on and know more!
1. Maintain a higher CIBIL score
If your CIBIL score is robust, it means that you have made timely repayments towards loans and more. Hence lenders are convinced to receive repayments on time. In turn, they can award you a reasonable home loan interest rate. A credit score of 750 or more is considered ideal.
2. Put down a higher down payment amount
None of the lenders will sanction the entire cost of your new home. About 15-20% of the cost of the house needs to be arranged on your own. It is known as the down payment amount. The higher it is, the lower will be your loan amount. Hence, your payable home loan interest rate charges will also be less.
3. Go for a home loan balance transfer
If you see a lender offering you a lower home loan interest rate and an active borrower, you can switch the loan. It can be done under the home loan balance transfer. It lets you transfer your loan account to a lender offering a lower rate. Transferring your home loan also means enjoying a higher top up loan to meet your different needs without usage restrictions.
If you can consider these aspects, you can surely bring down your home loan interest rate and make savings.
