5 Smart Tips to Get a Low Home Loan Interest Rate

 A home loan comes with a lower interest rate because it is a secured loan. 

But if you go for a longer tenor, you need to pay a large interest amount even when the EMI is lower. 

Thus, what are some ways to avail of it at a lower home loan interest rate? 

Read on and know more!

1. Maintain a credit score of 750 and more

Since home loans are long commitments, the approval is given only to such applicants who are creditworthy. And to determine it, lenders check your credit score. If it is higher and reads 750 or more, you can get the approval at a lower home loan interest rate. It means you have paid your debts on time and will continue to do that. Hence, lenders reward you with a lower home loan interest rate. 

2. A large down payment amount 

A considerable down payment amount simply reduces the borrowable home loan amount and lets you manage to pay lower EMI. Thus, if possible, you should aim to put down a large down payment amount while applying. 

3. Compare all available home loan offers

You should land on a third party platform and compare all available deals. This way, you can easily opt for the best home loan offer matching your needs and budget the most. 

4. Apply with a known lender

Another way to enjoy a lower home loan interest rate is to apply with a lender with whom you have a long-standing relationship. Since such a lender is aware of your financial profile, it may sanction the loan request at a lower rate. 

5. Consider a home loan balance transfer 

Existing home loan customers can switch their loan to a lender offering them a lower interest. This way, home loan interest rate charges could be saved, and a lower EMI could be paid. 

If you can consider these discussed factors, you will be able to manage a lower home loan interest rate.   

Also Read: Understanding the Benefits of Home Loan Balance Transfer