Owning a home is a dream of nearly everyone. Home loan helps an individual in fulfilling it. However, when opting for a home loan, a borrower needs to check many factors such as principal amount, tenor of the loan and interest rate. Opting for low interest home loans benefits a borrower as he/she has to pay low monthly interest.
What are the ways to find suitable home loan interest rates?
Following are some ways which will help an individual to get best interest rates from recognised financial institutions:
- Choosing a suitable lender
While opting for a home loan, an individual’s priority should be choosing a suitable lender who offers lower interest rates and less charge. An individual can do it by comparing various lending companies and selecting the one benefiting him/her the most.
- Maintaining a good CIBIL score
CIBIL score plays a vital role when availing a loan. It defines the creditworthiness of an individual. Having a good credit score allows the borrower to negotiate with the lending company to provide a lower interest rate when applying for a home loan.
- Paying a higher down payment
When an individual pays more money as a down payment, it reduces the overall loan amount. Furthermore, this leads to low-interest rate and helps the individual to save a lot of money. Thereby, it also improves the creditworthiness of an individual.
- Opting for a floating interest rate
Floating interest rate fluctuates due to changes in repo rate. However, opting for a floating interest rate will benefit the borrower as it is lower than fixed rate and generates savings.
Furthermore, when availing a home loan, an individual should check the EMI before as it will help him/her to choose the best lender. The individual can do it online using the housing loan EMI calculator of reputed financial organizations.
Therefore, an individual must consider the above-mentioned points to get low-interest home loans. By doing this, one can manage his/her finances well and save significantly. An individual can do so because he/she does not have to spend more money on the overall interest during the tenor.