When you first take on a home loan, there’s a lot of thinking involved. You get sleepless nights in calculating how much you can pay each month. You explore the market for the best offers and lowest interest rates and compare home loan lenders to find the one that best suits your needs. So, everything worked out just as you thought, and you got a home loan approval. Your EMIs have started, and all is set. But wait, it is time to review your home loan terms, and you want to make something sure that you are not missing out on better rates and offers.
Why should I be reviewing my home loan frequently?
Availing of a home loan is a huge commitment that lasts for at least 15-25 years. While such a step can help you save a good amount of tax, it also means that there will be a significant shift in your finances. With the alteration of government rules and new guidelines from the Reserve Bank of India, your life might face significant changes concerning fluctuating home loan interest rates impacting your home loan EMI. With all this in mind, it is imperative to review your home loan terms periodically to assess if you can save on the home loan EMI. A repeated review of your home loan details will help you integrate some decisions if your loan requires a home loan balance transfer.
- Impounding or Foreclosure
Foreclosure occurs when a borrower fails to pay their dues or EMIs and the lender repossess and sells the home to claim the given loan amount. Bringing down the EMI or the loan period is a wise move that will sooner reduce 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.
- Loan Top-up
Sometimes you might need additional funds to merge it with your existing funds to fulfil your dream. A top-up loan is an extra loan, a financing alternative acquired over and above the current loan amount from your home loan provider. The top-up loan is sanctioned if the borrower has a good credit score, repayment capacity, and a good rapport with the lender. 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.
A top-up loan is not given to everyone who has taken a home loan. Several elements are observed and examined before approving a top-up on—track records, repayment ability, etc. Top-up loans are either granted for a phase of 10 years or the outstanding tenure. The interest fee charged on the top-up loan is vaguely more than what goes into a home loan. You can utilise a top-up loan for renovation, furniture upgrades, or interiors of your new home.
- Home Loan Balance Transfer
To benefit from better customer services and reduced interest rates, several customers opt for a
- Negotiate to Avail Competitive Interest Rates
If you can negotiate to avail of competitive interest rates, it will help you save a considerable amount and reduce your repayments. This means you will possess enough disposable amount each month and put it to good use to pay off the home loan quickly and easily. Before opting for a home loan balance transfer, it is wise to renegotiate the home loan terms with your lender to see if they can offer you competitive home loan interest rates.
- Consolidate your Debts
This could be a big chance to maintain or rebuild your finances and bring your outstanding debt in control, as well as unite some of your debts. That would help you gain fewer repayments and ease in maintaining your budget.
- Benefiting from New Home Loan Features
Maybe it’s been a long time since you’ve checked your home loan and might have missed on a few new advantages. For example, an alternative fee structure or discounts could be a great boon to you, enabling you to pay off your home loan sooner with reduced costs.
How Often Should I Review My Home Loan?
Preferably, you should review your home loan every three years as enough time would have gone by to update your loan status to the present situation. In such cases, you can opt for a loan with an affordable EMI offer to save towards the overall home loan cost. The home loan scenario is highly competitive, and the same continues every year. Whatever stage you are in at present, it is vital to review your home loan frequently to be well-versed with the changes and continue to meet your financial needs well.
Clix Capital, a reputed NBFC in India, is aware that there are several factors to contemplate while deciding to take a loan to buy a home from a home loan provider. Click here to search and know more about purchasing a home and applying for a home loan from us. If you plan to apply for a home loan to fund your home purchase, we at Clix Capital offer home loans of up to ₹ 2 Crore for a repayment tenure of up to 25 years. Apply now and get the required funds instantly at a competitive home loan interest rate.