Home loans fall under the category of major loans, and are provided by many Indian financial institutions. The home loan amount is generally high and so is the repayment period. Nothing feels better than fulfilling a long-term commitment without any hiccups, right?
So, here are some tips for you to consider during the repayment process:
Try paying it off quickly
Try to pay off your debt soon, so that you can move on to achieve greater things in life. One of the best strategies for handling your debt is getting rid of it as quickly as possible.
Pay more frequently
Making payments every fortnight instead of every month will have a huge impact on your home loan repayment period. Plus, this will help you save a sizeable sum of money as your repayment amount will gradually reduce.
Make payments at a higher interest rate
Most lenders will generally calculate your interest rate a few points higher to shield themselves against increases in interest rates. This means making faster payments will help you save money from paying high interest, regardless of the subsequent increase in interest rates.
Consolidate your debts
This benefit is provided by most regulated financers and should be availed by all individuals who are repaying their home loans. You can club your personal debts (generally with higher interest rates) with your home loan to save on interest money.
Tweak your lifestyle
This does not mean sacrificing your lifestyle, but rather making some minor compromises. Giving up certain expensive luxuries might help you save a lot of money that can be used for your mortgage payments. Of course, you don’t have to make any sacrifices if you have a lot of money.
Switch your lender
You can switch to a lender who is offering lower interest rates. This will have a great impact on your total repayment amount and you’ll be amazed at the amount of savings that can occur.
Utilise your offset account to your advantage
Putting money in an interest-bearing account will generally provide very little interest, which will be eventually taxed. Instead, transferring this money in an offset account will help you save a lot of cash.
Split your loan
This facility will allow you to set the remaining balance of your home loan with a variable interest rate and is perfect for individuals who don’t want to be constrained with a fixed loan. However, you’ll have to fix a part of home loan balance first before availing this option.
Use your equity
If you’re making timely mortgage payments, then your financer will provide you with this investment option. A portion of your home loan equity can be invested, which will help in quickly increasing your overall net worth.
Refinance and invest the difference
Before doing this it’s always better to consult financial specialists from a reputed financial institution like Bajaj Finserv. When you are presented with the opportunity to reduce your monthly payments, make sure to invest the leftover amount.
Don’t hesitate to choose alternate lenders
There are many lenders in the Indian market who provide top-notch offerings with competitive rates. The high-level of competition among loan providers means better offers and lower interest rates for clients. Capitalise on the many opportunities that will help you mitigate your financial constraints.
Making payments as they come and ignoring the recent developments in the property and finance market can only spell disaster. It’s important to be abreast of the rate changes and new offerings in the market to negotiate a better deal.
We hope that you find these tips helpful while paying off your home loan. Spread the word to your friends and family members who are also making mortgage payments.
Bajaj Finserv Home loans with Finserv MARKETS come with attractive interest rates and a host of other features and benefits that can help you realize your dream of owning a home. You can also avail PMAY benefits. So why wait? Get your home loan with Finserv MARKETS, today!
Read more on how you can reduce your emi by home loan transfer only at Finserv MARKETS
“Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we works towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.”