Posted On: 28-April-2022
A home loan for buying a real estate is about a huge commitment that lasts not less than 15 to 25 years. Taking steps like these can save you a lot of tax but it will also bring significant chances to your finances. There has been several alterations and changes in the government rules and also new guidelines have come from the Reserve Bank of India. All this might bring several significant changes in your home loan interest rates affecting your home loan EMI. Because all these are major changes it is necessary you review your home loan terms and conditions time to time so that you can save on the home loan EMI. The reasons to keep reviewing your home loans periodically are below:
1. Benefitting from New Home Loan Features
It can be that you've availed a home loan long back and that you're not aware of the new home loan features because you've missed checking the new added features. Therefore get to know about the new features so that you can take advantages from it which might help you repay your loan faster and reduce your repayment.
2. Impoundment or Foreclosure
Foreclosure is that process in which the borrower fails to repay the loan which makes the lender repossess the home and sell it in order to claim the loan amount given. When you bring down the loan period or the EMI it reduces the burden of paying and do away with the charges. The sooner, the better it is important to have possession of the original property papers from the lender. For that, a written application for paying up a lump sum is required to be given attached with IDs, address proofs, and loan approval papers. You might not be charged any additional fee.
3. Loan Top Up
Sometimes the fund that you've already taken is not enough, and you might need to borrow additional funds and merge it with your existing funds to fulfill your dreams. A top up loan is a loan that is extra which is added with the current loan amount from your home loan provider. The top up loan is approved when the borrower has a good credit score, repayment history, and a good rapport with the lender. To be eligible for this loan the borrower needs to fill up a form and submit it with Proof of Identity, income proof, previous documents, etc. A small processing fee is charged on the top-up loan.
4. Negotiate to Avail Competitive Interest Rates
If you can wilfully negotiate to avail competitive interest rates you'll be able to save a lot of your income and also reduce your repayment amount. This will leave you with quite a disposable amount of money at the end of the month which you can use to pay your home loans easily and quickly. Before you opt for a home loan balance transfer we recommend you to negotiate the home loan terms with your lender to find out if they can provide you competitive interest rates.
5. Consolidate Your Debts
This is your chance or an opportunity to rebuild your finances and maintain them. You can bring your outstanding debt in control as well as unite some of your debts.