Want lowered Housing Loan Interest Rates? These 3 tips can help!
Anyone taking a home loan would want lowered housing loan interest rates. Even the slightest reduction in your rate will bring you
substantial savings over the tenure of your loan. However, in the pursuit of
lower rates, some borrowers settle for inferior loan products. These loans
end-up causing them more harm than good. Keeping this in mind, the following
article will provide you 5 tips that will help you reduce your rate without
requiring you to settle for sub-standard borrowing instruments.
1. Co-borrow with woman.
Borrowing jointly itself has numerous benefits. For instance, you get higher eligibility and quicker approvals, especially if your co-borrower hastheir own source of income. However, co-borrowing with a woman comes with an added advantage – lowered interest rates. That’s right! Women borrowers are provided with lower rates as compared to those applicable for men. And co-borrowing with a woman means you get the same rates as women. If your rate is 8.55%, co-borrowing with a woman should mean a straight reduction of 0.05% on your home loan interest rate.
2. Opt for floating home loan interest rates.
Another great way to avail lowered housing loan interest rates is to opt for a floating rate of interest. Home loans generally come with two options – fixed and floating rates. With fixed rates, the lender has to provide you the same rate, no matter what, for the entire tenure of your housing loan. This is a risk to the lender as they will still have to provide you the fixed rate even if interest rates on home loan increase in the future. With floating rates on the other hand, the rate applicable on your home loan will increase or decrease as per the market scenario - a risk that you have to bear. Considering that you have to take the risk, lenders provide lower rates if you opt for floating rates.
3. Refinance your home loan.
Another great way to avail lowered housing loan interest rates, even after you’ve already taken a home loan is to refinance your home loan. This refers to the process where you transfer your loan balance from your existing lender to a new lender, in-exchange for lowered rates. All you have to do is find a lender providing lower rates and then just apply for refinance. Before doing so, you could also approach your current lender and make them aware of your decision, to keep you on as a client, they might offer to match the other lender’s rate. If you current lender provides you lower rates, it is more beneficial as you skip on the processing fees and closure charges incurred when changing lenders.
These 3 tips should help you enjoy lowered housing loan interest rates, and in the process, save considerable amounts of money. If you have any queries regarding any of the information mentioned in the article, it is best you contact one of the leading lenders, they will be more than willing to provide you the clarity you need. Good luck and all the best!
1. Co-borrow with woman.
Borrowing jointly itself has numerous benefits. For instance, you get higher eligibility and quicker approvals, especially if your co-borrower hastheir own source of income. However, co-borrowing with a woman comes with an added advantage – lowered interest rates. That’s right! Women borrowers are provided with lower rates as compared to those applicable for men. And co-borrowing with a woman means you get the same rates as women. If your rate is 8.55%, co-borrowing with a woman should mean a straight reduction of 0.05% on your home loan interest rate.
2. Opt for floating home loan interest rates.
Another great way to avail lowered housing loan interest rates is to opt for a floating rate of interest. Home loans generally come with two options – fixed and floating rates. With fixed rates, the lender has to provide you the same rate, no matter what, for the entire tenure of your housing loan. This is a risk to the lender as they will still have to provide you the fixed rate even if interest rates on home loan increase in the future. With floating rates on the other hand, the rate applicable on your home loan will increase or decrease as per the market scenario - a risk that you have to bear. Considering that you have to take the risk, lenders provide lower rates if you opt for floating rates.
3. Refinance your home loan.
Another great way to avail lowered housing loan interest rates, even after you’ve already taken a home loan is to refinance your home loan. This refers to the process where you transfer your loan balance from your existing lender to a new lender, in-exchange for lowered rates. All you have to do is find a lender providing lower rates and then just apply for refinance. Before doing so, you could also approach your current lender and make them aware of your decision, to keep you on as a client, they might offer to match the other lender’s rate. If you current lender provides you lower rates, it is more beneficial as you skip on the processing fees and closure charges incurred when changing lenders.
These 3 tips should help you enjoy lowered housing loan interest rates, and in the process, save considerable amounts of money. If you have any queries regarding any of the information mentioned in the article, it is best you contact one of the leading lenders, they will be more than willing to provide you the clarity you need. Good luck and all the best!
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