Anyone opting for a home loan to buy a dream home is probably making their biggest financial move. Housing loan is a smart way to get finance from leading lenders to buy a dream home without disturbing your assets and savings.
However, after you have availed the loan, you need to focus on home loan repayments. You need to pay EMIs towards it, and it is not always easier to manage the anticipated overheads.
If you are feeling a bit jittery towards your house loan repayment schedule, here are some easy tips to help you make your housing loan repayments faster. Read on!
Follow these Tips and Enjoy Easy Home Loan Repayments
Pay Higher EMIs if Possible
It is one of the best ways to ensure that you can repay the loan amount even before the end of the loan tenor. By paying a bit higher home loan EMIs (Rs.2,000-Rs.5,000 or as per your capacity), you can cut off a considerable number of months from your loan period. You should also invest your money smartly to generate enough funds to enhance your equity to be able to increase the EMI amount. You can do that when you receive the annual salary hike.
Go for Prepayments
The longer you will take to prepay the availed home loan amount, the higher loan interest charges you will need to bear. Making some partial prepayments is a speedy way to cut off your loan principal and also bring down the interest rate. Nowadays, leading banks and non-banking finance companies (NBFCs) do not charge any amount when you make prepayments or foreclose the loan account. You can go for the home loan prepayments when you receive the yearly performance bonus.
Opt for the Home Loan Balance Transfer
If you are unable to bring down your home loan interest rate that can help you in the faster home loan repayments, you can transfer the home loan account to another lender. For doing this, you can easily opt for the home loan balance transfer facility. It helps by transferring your loan account from one lender to another. You only need to pay some processing charges to your current lender to avail the same. You can also get a top-up loan of up to Rs.1.5 crore above and over the loan to fund other needs.
Availing a housing loan to fund your dream home is another thing and being committed to the loan repayment schedule is another. Now, you are aware of some of the prudent tips that will help you manage the loan repayments easily.
You can also make the most of the home loan repayment calculator available on a lender’s site. It can help you know an amount that will be good to repay the housing loan over a tenor while considering your monthly outlays and other expenses.
It is good to repay the house loan faster so that you can move towards other financial goals. If you are serving a housing loan, it is the time to follow the tips and repay the loan quickly.