5 Smart Tips to Get a Low Home Loan Interest Rate

An affordable housing loan may be ready for you if you follow a few tips to avail of it at a lower interest rate. A home loan may be secured debt. 

But you can still pay higher home loan interest rate charges if you don’t consider a few tips. 

In the same context, you can implement some handy tips to get a lower home loan interest rate. 

Read on!

1. Maintain a higher CIBIL score 

Your credit score is the mirror of your creditworthiness. If your credit score is robust, it means that you have paid your outstanding on time. Hence, a lender may reward you with a lower home loan interest rate. 

2. Put down a large down payment amount 

If you can put home down payment, you can reduce the loan amount. In turn, it lowers your lender’s risks. Hence, your overall interest rate charges may come down. 

3. Negotiate for better terms 

If you had a good financial relationship with your bank, your lender might allow negotiating for reduced home loan interest rate charges.   

4. Go for a long tenor 

Some lenders reward you with a lower home loan interest rate if you go for a longer tenor. It is because a longer tenor means your EMI amount will be lower. Hence, you may find no issues in clearing it – eliminating the default risk of the lender. 

5. Consider a home loan balance transfer 

If you are an existing home loan borrower looking to make the most of the lowering home loan rates, you can switch your loan account. You can do that to a lender offering you a lower rate. This way, your home loan interest rate will reduce, and you will be able to pay lower EMIs. 

Considering these easy to follow tips can help you manage lower home loan interest rate charges.