Presently, home loans attract the best rates in the market in the secured financing segment. The subsequent repo rate cuts in the last year have significantly contributed to such a reduction. Borrowers can further avail the funding at reduced home loan rates, thus experiencing overall improved affordability. 

Following are some smart ways in which existing and new home loan borrowers can reduce their housing loan rates.

• Compare available lenders in the market

The home loan market is reasonably competitive, with several lenders vying for borrowers’ attention. This pushes them to offer attractive home loan rates, which, in turn, can make financing affordable for the borrower. You must thus make a detailed lender comparison before choosing the financing institution to borrow from for the best rates.

• Choose between floating and fixed rate system

Fixed rates are often set a notch higher than floating rates, while the latter allows adjustability of the rates as per market trend variation. You must thus select between the two levy types as per your suitability for home loan rates reduction.

• Go for a balance transfer facility

If you are an existing borrower seeking to reduce the interest burden on your housing loan, opt for a balance transfer facility, which should help refinance the loan outstanding at a reduced rate.

Before applying, you can use a home loan calculator as well. It can help you assess the amount, home loan rates and tenor to keep your EMIs affordable.

Read Also: 4 Tips to Avail of the Lowest Current Home Loan Interest Rate