6 Ways to Help you Deal with Rising Housing Loan Interest Rate

• Posted by Aditya Sehgal July 31, 2018 - Filed in Other - #Housing Loan  #Housing Loan interest rate  #Loan  - 327 views

  A Home Loan is an amazing finance option to help anyone with the required Home Loan eligibility to fulfill his/her wish of buying his/her own home. If you want to purchase your own home, you can avail a Home Loan of up to Rs.3.5 crore. But, you will need to repay it over a tenor along with the principal and interest rate payment in the form of EMI.

  Since a Housing Loan is a long-term commitment where people may opt for a longer tenor of more than 20 years, its repayment may affect their monthly income for long.

  Thus, if you are on your way to purchase a home with a housing finance and concerned about how to get the lower Housing Loan interest rate, you can deal with it easily.

  

  Let’s know some easy ways which apply even to existing loan borrowers who are paying higher Housing Loan interest rates.

   

  • Extend your Home Loan Tenor

  If you want to reduce your interest burden of the Housing Loan interest, you can opt for a longer tenor. By selecting the extended Home Loan tenor, you can help yourself and stretch your Home Loan cost in more months and pay lower interest and lower EMIs. The only thing to know here is that you will have to pay the compounding rate for selecting a longer tenor. No issues, unless and until it reduces your immediate Housing Loan interest margin.

   

  • Opt to Make Some Prepayments

  Do you have some surplus money that’s lying idle in a saving bank account? Take it out and make some prepayments towards your Home Loan. Like this, you can reduce the interest burden on your Home Loan and pay lower EMIs. Leading online lenders can let you make prepayments for your Home Loan without asking for a penalty.

   

  • Pay Some Extra EMIs

  To bring your Home Loan interest rate in your control, you can opt to make some extra EMI payments in a year and lessen the principal and interest outlay.

   

  • Sell Off Some Assets to Make Extra Payments

  Are your some assets such as old bike or home lying idle? Why don’t you sell them off and use the money to make some extra payments on your Home Loan? Yes, it is a smart move that you can help you reduce your Housing Loan rates considerably.

   

  • Opt for the Home Loan Balance Transfer

  If you used all the discussed tips and found that the Home Loan rates are still higher, you can switch your Home Loan lender and move to a lender offering lower rates. The facility is known as Home Loan balance transfer which lets you transfer your Home Loan account from one lender to another to enjoy lower interest rates. However, you need to pay some charges and processing fees to your existing lender for availing the facility. Online lenders also let you enjoy a top up loan when you do the Home Loan balance transfer up to a limit of Rs.50 lakh with a reduced rate and extended tenor. You can use the top up loan to cover your many needs.

   

  • Opt for Floating Interest Rates

  Compared to the fixed interest rate, you should opt for a floating interest rate and pay 1-3% lower interest rate as it’s affected by fluctuations in the market. If you are enough to make ends meet, you can opt for Home Loan to avail the benefits of floating rates.

   

  Being aware and smart is the key when it comes to reducing your burden of paying a higher Home Loan interest rate. Now that you are aware of those easy ways, you can easily keep the interest burden under check and manage your monthly income easily.