Congratulations if you have just been able to purchase a home of your dream with the help of a Home Loan!
Now that you have a Home Loan to repay, you should know that it involves a longer repayment period. It means that you will have to manage your monthly income tactfully to pave the way for the Home Loan EMI payments easily.
Hence, it would be good if you implement some time-tested tricks and eliminate or pay off the financial burden of a Housing Loan or get the loan monkey off your back quickly.
Here’s how you can pay off your Home Loan super quick
1. Take the advantage of zero pre-payment charges
If you have availed a flexible housing loan when it comes to pre-payment fees, make the most of it wherever you can. Whenever you have surplus cash, make some lump sum payments, without incurring the penalty of pre-payment charges. Frequent pre-payments will help to reduce the principal, and you will pay a lower interest rate as it’s computed on the outstanding amount.
2. Opt for Home Loan balance transfer
If you see that another lender is offering a Home Loan at a much lower rate than what you are currently paying, opt for the Home Loan balance transfer and enjoy a lower interest. What’s more, opting for Home Loan balance transfer also helps you avail a unique facility of top up loan. A top up loan can give you up to Rs.50 lakh on a lower rate of interest with a longer tenor and relaxed eligibility conditions. It is because it is an add-on facility that one gets with Home Loan balance transfer. However, you will have to pay the penalty for switching the loan amount, and if it’s more than what you will get the benefit, don’t go for it.
3. Got yearly performance bonus? Pay more towards the EMIs
You may get some annual performance bonus or increment as a part of your employment. And it is a smart idea to pay off a significant part of your existing housing loan with it by paying an increased EMI towards it. These extra EMI payments will bring down the housing loan interest rate that you are paying on your Home Loan, and will help you repay it faster.
The Bottom Line
Always remember that it’s easier to avail a Home Loan if you have the required creditworthiness. But, what matters is the repayment of it. Yes, a majority of people find it difficult to pay off housing loan on time, and for them implementing some discussed tips will help.
Why not incorporate the above discussed handy tips if you have an existing housing loan, and pay it off fast, so that you can accomplish and manage other goals of your life? Best of luck!