5 Steps to Help You Avail A Lower Home Loan Interest Rate

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.