Are you repaying your home loan and want to pay it off faster?
Do you want to apply for a home loan and want to repay it before the actual tenor?
Is it also on your mind to pay a lower home loan interest rate and manage reduced home loan EMIs?
If your answers are ‘Yes’, you don’t have to bother at all!
Read on and know a few ways to do everything confidently!
- Pay a higher home loan EMI if possible
One of the best ways to repay your loan faster is to pay a higher home loan EMI if your budget permits. It will help you to close your loan account earlier than the tenor. Even if you increase your home loan EMI by Rs.2,000, you can close the loan much earlier. Another benefit of this will be savings on the home loan interest rate charges.
- Make prepayments during the tenor
If you are already repaying a housing loan, you can repay it faster. You can achieve it by making prepayments during the tenor. Once you make prepayments, your principal amount will come down, leading to lower interest charges and reduced EMIs. You should check if your lender charges anything extra for it. It is because most lenders don’t charge if you make prepayments.
- Choose a small tenor
Another way you can repay your home loan faster is to go for a small tenor. Once you do that, your home loan EMI amount may increase. But you will end up saving on the home loan interest rate charges. The overall cost of the loan will also reduce, and it means your burden of obligations will lessen.
- Renegotiate with your current lender for better rates
If you see that leading lenders offer a new home loan or a balance transfer at a lower rate, you should renegotiate with your lender. Doing this will mean that you can enjoy a better home loan interest rate. In turn, it will help you pay lower home loan EMI, and your loan account will be closed faster. You can know about your new EMI amount using the online home loan EMI calculator. The tool is available on the top lender’s platform for free.
- Opt for a home loan balance transfer
If your existing lender does not oblige by adjusting your home loan interest rate, you have another option. You can simply switch your home loan account from your lender to a one offering a lower housing loan interest rate. Once you do that, you will pay the lower home loan EMIs to your new lender. It will also help you pay off the loan account faster. The facility of the home loan balance transfer can let you access a unique top up loan. Top lenders let you avail of a large top up amount on home loan balance transfer. The top up loan amount could be used for anything as per your needs. There are no restrictions from lenders. The rate of interest and the tenor for repaying the top up loan is almost the same as your active home loan. Hence, if you have some extra needs to cover, you don’t have to apply for a personal loan. Switching your home loan will help you get a considerable amount at a much lower rate.
You just went through some of the easiest ways to lower down your housing loan EMI and pay off your home loan faster.
Depending on your borrower’s profile, you can consider following a method and see your home loan being paid super fast.
In case of confusions, you are free to connect with a known financial expert to bail you out.