With the repo rate cut down to 4% early this year, home loan interest rates witnessed a consequent reduction too, making housing finance affordable for many. Individuals planning to avail housing financing can further initiate to reduce interest rate levy on their loans with a few things in place.
Below are some ways, and you can use one or more of them for interest on home loan deduction further when applying for this financial product.
Choose a higher down payment
Making a higher down payment allows you to bring down the loan principal amount, thus leaving you with a lower interest burden. It also indicates a disciplined handling of finances, which can bode well with the lender, allowing them to offer lower rates on home loans.
Compare lenders to find the best loan option
Several lenders offer competitive home loan interest rate to benefit borrowers’ affordability. Make sure to compare available lending institutions in the market to arrive at the lowest interest rate levy.
Make use of seasonal/festive offers
Going for seasonal or festive offers on home loans can also help secure the best rates in the market, helping you to ease out your interest burden.
Document all income sources
When applying for the advance, make sure to provide all primary and secondary income documents to present an improved repayment capacity and negotiate for better rates.
Opt for a balance transfer facility
Opting for a balance transfer during the loan tenor can further help reduce interest rate on home loans.
Use a home loan interest calculator to determine the total interest payable during the tenor for informed borrowing decisions.
Read Also: Paying High EMIs on Home Loan? Know how to Pay Less!
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