The Home loan EMIs can often account for a substantial part of your monthly income. It is not rare to find your EMIs too high, especially when you have unforeseen expenses or a deficit in income, for whatever reason.
Be it a financial crunch or other goals and aspirations, if you wish to reduce your home loan burden, there are a number of ways you can do so.
Renegotiate Your Home Loan Terms
One of the easiest ways to reduce your home loan burden is to increase your tenor. A longer repayment tenor translates to smaller EMIs, enabling more comfortable payment every month. But it is important to note that a longer repayment tenor comes with a higher interest outflow, so you end up paying more interest over the course of your tenor.
If you still wish to reduce your EMI through a longer tenor, contact your home loan lender and submit a request. Do note that such a revision is entirely subject to the lender’s discretion.
Transfer Your Home Loan Balance
Alternatively, you consider transferring the balance amount on your home loan to a new lender. A home loan balance transfer gives you the opportunity to renegotiate the terms on your home loan. You can revise your tenor and even avail of a lower home loan interest rate, subject to availability.
What’s more, when you avail of a home loan balance transfer, you also have the option to opt for a top-up loan of Rs.1 Cr* or even higher, basis eligibility.
Apply with a Family Member
Another way to reduce your home loan burden is considering availing a home loan with a co-applicant. When you apply with someone, the other applicant also becomes a co-owner and equally liable for the home loan EMI.
Pay More in Down Payment
Interest accounts for a significant portion of the sum you pay over the course of the tenor. Thus, a simple way to reduce home loan burden is to borrow less when purchasing the property. Paying a larger sum as down payment will reduce the loan amount and, subsequently, reduce the principal and interest components.
If one of the reasons you wish to reduce your home loan burden is to avail of another line of credit in the near future, home loan part-prepayment is your quickest solution. Prepay your home loan, in part or entirely, at no extra charge*** and reduce your liability.
***Valid for individuals with a floating interest rate