Who does not want to own a home of his own? All of us want to have one such place where we can just be what we like to do. However, not all have the financial affordability to fulfil such a dream. But, with modern funding solution such as Home Loan, it has quite become easier to own a home.
Still, since a housing loan also involves paying the Housing Loan interest rate for a longer tenor such as 10-20 years or more as per one’s tenor choice, people are a bit hesitant to opt for a Home Loan. Although nowadays a Home Loan interest rate has come down with a leading lender offering it at an 8.35% only, still it’s too much for some people to afford.
In the same milieu, let’s provide some methods to help you get a lower Home Loan interest rate.
1. Manage a higher credit score
The concept is quite simple – the higher you’re CIBIL or credit score, the more chances of your being offered a good deal on a Home Loan interest rate. Yes, if you have a CIBIL score of approximately 750+ or more, there are more chances that a lender may offer you a lower Home Loan interest rate. You can also bargain with a lender that your CIBIL score is high, and you should be given a lower housing loan interest rate.
2. Have a sound repayment history
Having a good repayment history means repaying all existing loans EMIs and credit cards’ outstanding on time and before the due dates. Yes, lenders not only love to approve a Home Loan to such people with a good track record of their repayments, but even offer them a lower Home Loan interest rate as they don’t consider them risky prospects.
3. Shop around for a good deal
While opting for a Home Loan, a majority of the borrowers settle for the first deal that they get on a housing loan which is wrong. Always know that a Home Loan is going to be a long-term liability and you may be paying a significant portion of your monthly income towards it. Hence, you should shop around for multiple Home Loan offers and then only decide. For this, you can go to a third-party website offering all the leading offers of the service providers and pick one suiting your needs and affordability.
4. Opt for a Home Loan balance transfer
How to avail a low Home Loan interest rate after you already have an existing Home Loan? You can avail a Home Loan balance transfer with a leading lender if you see that you are paying more interest to your current lender. All that you pay is a transfer penalty fee, some processing charges and more. Consult your current lender and inform them that you are mulling a Home Loan balance transfer. They may not want to lose a customer and may offer a lower Home Loan interest rate.
The Bottom Line
You can make your future as well as Home Loans affordable if your implement above-mentioned methods and emerge smarter. Stay alert, play around various offers, bargain on your credit score and be on your way to an affordable Home Loan.