Did you know that a large number ofprospective home buyers continue to live in rented houses despite having a home loan eligibility? Are you wondering why?
It’s because they are afraid of paying the home loan interest rate for a longer duration as the EMIs hampers their monthly income for long!
However, there are still many ways that a smart home loan prospect can implement to help enjoy a lower home loan rates. In the same context, we will discuss some vital tips that will help you lap up a lower home loan interest rate.
Easy Ways to Help You Enjoy A Lower Home Loan Interest Rate
- Maintain a CIBIL Score
If you maintain a consistent Credit Score reading 750+ or more out of 900, lenders will consider you a safe case in terms of the repayment that you will make. Maintaining a robust CIBIL Score helps you get rewarded from lenders as they offer home loan at a lower rate. When you avail a housing finance at a lower rate, it helps you save more on what you have paid for not maintaining a good score and paying higher rates. Thus, ensure to have a consistently higher Credit Score by always paying your bills on time such as existing loan EMIs, credit card outstanding and more.
- Have a Consistent Employment History
Anyone applying for home loan and not having a consistent employment history is not offered a home loan at a lower rate. In fact, lenders may reject your home loan application if you don’t have a consistent employment history. The golden rule in this regard is having at least a 3 years of work history to enjoy a lower home loan rate. Also, people switching jobs for monetary gains (salary hike) will not get the benefit of getting a home loan approval at all.
- Shop Around
Always ensure to shop around for the best home loan deals while venturing out to look for a home loan deal on the budget. You may get the home loan eligibility with the first lender that you apply, but may get even a better deal from other lenders as well. Thus, what you can do in this regard is – compare all home loan deals online at a third party website, assess your needs, repayment capacity and then only opt for the best.
- Negotiate with Your Long Associated Bank for A Better Rate
There are many times that you get a better home loan interest rate deal from your bank that you are long associated with or have a loan or savings/salary account with. Try to negotiate for a better deal on the housing loan and the bank may honour the long association that you have over the years.
- Put Down More Down Payment
Anyone applying for a home loan won’t get full finance from the lenders as they offer only up to 80-85% of the value of the home that you want to you. The remaining 10-15% has to be borne by the customer which is also known as the down payment. To enjoy paying a lower EMIs, you can agree to pay more (up to 30-40%) as the down payment. By already paying a part of the payment upfront, you only need to repay a part of the loan which in turn, lowers down the home loan interest rates.
The Bottom Line
You can go ahead and start implementing the discussed tips to help you lap up a lower home loan interest rate. All the best!