Tips to save your pockets against high-interest rates.

Home Loan lasts for a span of around two to three decades. Life may not be merrier each day, at times you might have to face steep inflation, costs cutting, job loss or recession, etc. So, it becomes important you save some bucks on your home loan. So, here are few tips that will help you save from the brunt of higher interest rates.

Negotiate with a loan officer

You would be happy to know a negotiation is a powerful tool. It helps you to bring down your interest rates to great extent. Your CIBIL report plays an important role in reducing interest rates. With a good CIBIL report, you can get some rebate on your interest rate and processing fees.

Make more down payments

Although, it’s an irony that you apply for a home loan because you don’t have ample of money to buy the home in cash, however, it would be wise if you pay more money towards down payment. That's because it will save your money on the interest component in the end. It's a good mantra to reduce your interest burden.

Keep CIBIL score clean

Many times incorrect details, late payment, bad records in CIBIL score will only lead to your home loan application rejection. So, it would be wise enough to make all your payments on time, eradicate any discrepancies in your report talking to the credit bureau, as it will get attractive interest rates and flexible ways for loan repayment.

Look for seasonal offers

In their quest to get good business, lenders often bring great home loan deals at regular intervals. So, don't forget to take advantage of these offers and avail an attractive interest rate. Home Loan is an adjustable mortgage wherein you pay low-interest rate in the initial phase, but then over the years, you bear higher interest rates. Therefore, it would be better to do proper research in terms of the interest rate applicable, principal amount, switching costs, prepayment charges, processing fee before you're willing to take any offer.

Make Partial Payment

Whenever any bank or finance company allows you to make the partial payment you can go for it. If you can make a partial payment, apart from your regular EMI, it would be helpful to reduce your loan burden in the long run. So, wherever you receive Christmas or Diwali bonus, any incentives earn, any fund maturity amount received you can divert the funds to make part payment, you will end up saving a lot on the interest component.

Take loan online

Many reputed private finance companies and banks have introduced websites that have complete details of their customized products. Right from new home loans to loan against property, loan for NRIs, home renovation loan, plot loans, you will get a detailed information about interest rates, tenure, repayment options and more. Right from the cozy corners of your home or office, you can fetch details required to apply for dream abode.

These are some of the ideal ways to help you save more, and pay the home loan faster and don't compromise on your emergency funds as well.

Need a home loan? Here is what you have to keep in mind…

Acquiring new home is one of the most auspicious moments in life. Due to falling interest rates, housing loans are now available quite cheaper. The process of online application has made the loan application, approvals and disproval quite a simple and hassle-free process.

But, you get an approval for a housing loan once lenders evaluate your credit history and check your borrowing capacity.

Here are few things to keep in mind while availing a home loan:

Interest Rate

The interest rate on housing loan is determining factor whether you should take a loan from a particular lender. Lower the rate, lesser would be the EMI outgo and more affordable it proves on your pockets. Home loans are fixed interest rates or floating rates. The fixed rates give you constant monthly installment options through the loan duration, floating rate charge with lender's economic factors, growth and changing lending practices. So, compare and weigh options before you zero in on a particular loan amount.

Check affordability

Customers should know their risk appetite and then choose a particular amount for a monthly installment that you can afford. Consider the possibilities of not getting raise very soon or due to the unexpected circumstance you can eye on loan to income ratio of 20% to 30%. This way you can at least don't develop a break in EMI payments. You can make changes in the tenure to reduce or increase monthly installment depending on your affordability

Shop around

There are hundreds of banks and private finance lenders that offer home loan at low-interest rates. But before taking a home loan, just visit online and compare the interest rates of leading players, charges structure of all available loan products. Comparison helps you to choose a loan which is not only the most reasonable interest rate but also limited fee and charge.

Take an insurance plan

Once you have taken a loan, it’s obvious you have to clear it on time. However, if anything unfortunate may happen and you might perish from the world, the liability falls on your family's shoulders in your absence. Hence, you can buy insurance cover to cover up the loan repayment costs.

Property Papers

There are a lot of fraudulent builders out there who might dupe you with fake property papers. Once the amount is transferred to the bank account they might vanish somewhere. Therefore, before you lay your hands on a property, make sure the builder is reputed and all property papers are in place. With RERA implementation, check the builder's profile online on RERA website. Lenders may often refuse to give loans if the builder is not in the approval lists.

Credit Score

One of the most important parameters, lenders adjudges loan to value is the credit score. A good credit score means you’re a responsible citizen and make all your debt payments on time. This helps you maintain good credit score and it will help you to negotiate for low-interest rate deals as well.

Follow these simple tips and apply for a suitable home loan online, now!