Six Tips That Will Lower Your Home Loan Interest Rates

Home buying is one of the major achievements in life. It requires a lot of planning and a set of responsibilities to buy your home. Financing your home is one of the crucial elements, and home loan proves to be a convenient way to meet your home buying needs due to the sky-rocketing price of the real estate segment. However, before you apply for a home loan, there are a couple of factors which would have to be evaluated such as equated monthly instalment, interest rate, principal amount, etc. Banks and Non-banking finance companies provide home loans with attractive rates, festival, and promotional discounts.

Here are a few tips to get low home loan interest rates:

Strong Income Source

A strong and stable income source will speak volume in front of the lenders. It means you can comfortably repay your loan. Therefore, it is wise to display employment stability and good income to calculate your home loan eligibility.  An applicant with a regular income source and stable job will have better chances of getting a home loan at a low-interest rate deal.

Debt-To-Income Ratio

It is defined as the ratio of income compared to fixed monthly obligation. It is advisable to keep your EMI across all debt less than the monthly income. It means you would be able to make comfortable payments for your home loan and get easy loan processing.

Location & property value

A property with good location, RERA authorized with proper documentation can help you fetch discount on home loan interest rates. Property located near railway stations, amenities like hubs, an educational institution with good connectivity will have better chances of getting quick loan approval.

Take home loan early

It's the most beneficial step in life to take a loan when you're young somewhere in your late 20 to early 30s. When you're young and have just stepped into the world of employment, your credit score is great and you're free from any form of financial liabilities. Besides, experts say you get adequate time to manage cost and repay the loan before your vesting age. It will help you get some discounts on home loan interest rates.

Down Payment

Banks or NBFCs well grant only 80-85% of the loan amount, so you should arrange margin money of 15-20% towards the down payment. Higher down payment will reduce the burden of monthly instalment and rate of interest. You will get affordable EMI on your loan.

Credit History

Last but not least, every lender will evaluate your credit score to determine the loan eligibility. A good credit score of around 750+ will help you borrow home loan at attractive interest rates and give other benefits. To maintain your financial health, pay all your existing dues on time, keep a clean repayment record. Improve your score, if it is not up to the mark before you make a home loan application.

Comparing home loan quotes online can help you get some good deals. There are many reputed banks and finance companies who have partnered with aggregator sites to provide borrower some good deals and discounts. Carefully, compare the Apnaloan home loan interest rates principal amount, loan tenure, processing fee, and other factors and make an application online!

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arjun Joined: March 13th, 2019