Loading...

HOME LOAN GUIDELINES and TIPS for FIRST TIME BUYERS INDIA

If you are taking a home loan, the interest rate and loan tenure of the loan amount play a big role in deciding how much its EMI will be. If you are going to take a home loan, then we are going to tell you some tips, so that you will be able to reduce the burden of EMI.

If you want a home loan with a low EMI, then you need to find a bank that is offering a home loan at low interest. However, it can be a bit difficult to find out by going to every bank. Also, it can be a bit annoying for you to find out which bank is offering better deals. We are telling you some tips, so that you can get a good deal on home loan and your EMI burden can be reduced.

Compare online interest rates

The best way to get a better home loan today is to find an online home loan offer. There are many websites and portals that provide information about interest rates, fees and other charges charged by various banks regarding home loans. Therefore, do research before taking a home loan, so that you can get a great deal.

Take a long term home loan

The longer the home loan period, the lower the EMI charged per month. However, take a long-term home loan only if you feel that you cannot afford a higher EMI. When you take a long-term home loan, you will have to pay a large amount of interest to the bank. Before taking a home loan, you should calculate the total amount to be paid according to the loan duration and interest rate. For this you can resort to ET Wealth's EMI calculator.

Try to have a higher EMI amount, although it should not be so much that you may face difficulty in paying it. Therefore, choose the term of the home loan very carefully, as it will directly affect your EMI, which you have to pay every month.

In the initial years, you may face some difficulty in paying home loan EMI, which is a comfortable thing. However, it will become easier for you with the passage of time, as a person's income increases over time.

Downpayment as much as possible

Some banks offer to finance 80-90% of the property value, but you should avoid doing such a deal as far as possible. If you do not have money, then you can make a downpayment of 10-20 per cent, but if you have money then avoid making deliberate downpayments. The reason for this is that the higher the down payment, the lower your LTV ratio (loan to value ratio) will be. This will also increase your loan eligibility and increase the chance of getting a loan.