The real estate sector has been growing rapidly in recent years and it is expected to contribute nearly 13% to the GDP of India by the year 2035. The market is likely to grow to nearly Rs. 7,200 Crore.
This rise is directly connected to the increase in the housing demands of the masses. Consequently, the Indian Government has also extended some of the lowest home loan interest rates to benefit the borrowers.
This has eased the financial burden for the home loan borrowers as they can repay the loan amount conveniently. Moreover, one can also follow several methods to lower the payable interest on their housing loan. Let’s take a look at three ways to lower the interest payment on housing loan –
Part Pre-Payments
You can make multiple part pre-payments before the repayment tenor ends. It will help you reduce the overall repayable loan amount and the interest payment applied on the same.
Home Loan Balance Transfer
Transferring the outstanding balance of your home loan is another effective way to obtain the lowest home loan interest rate. It helps you save a substantial amount of money as you transfer the line of credit to another lender who offers lower rates compared to your existing lender.
Revising Installments
You can also opt for revising your installments every year in case you experience a change in your income and repayment capability. You can increase the EMI amount or choose a shorter tenor to repay the amount faster.
Consider these tips for saving for your first home loan to make the most of the amount borrowed by you.
Additional Read: 2 Proven Ways to Lower down Home Loan Interest Payment and Tenure
