The dream of buying a home is not new. It has been there for ages and every individual aspires to have his own address. A home is much more than a property and carries a lot of emotions and memories. It takes a lot of money, time and hard work to get a permanent address. Now that you have applied for a home loan, you know the value and the cost involved in it. A home loan is a burden for two reasons: long term and high EMI amount. The stress lies in paying the high EMI every month from the income that one earns every month. It becomes difficult to carry forward this EMI payment each month for a long tenure. If you are on the verge of borrowing, this is the right time to plan and decrease the burden. There are an ample number of ways that can help with a burden-free borrowing experience. Take a look at these top 10 tips to make your home loan burden free with a low home loan interest rate .

Top tips to reduce home loan burden

● Arrange your down payment from the time you have decided to purchase a home. Without the down payment, it is not possible to get a house renovation loan. It is not a small amount of money, so start early so that you can arrange the required amount within a reasonable time. The down payment is always on the homeowner and one needs to arrange it.
● Choose the right property for yourself according to your capacity. If you are capable of spending the required amount, you must stick to your budget. Buying a home on a budget will give you a low EMI each month. If you are aiming for an affordable loan, you need to keep the principal loan amount low and, for that, choose the right price for the property.
● If you have any assets to use, secure your home loan. When you secure your home loan, you will get a low home loan interest rate. The low rate of interest will keep your EMI low and the burden monthly will be less. It will be helpful for you to manage the debt accordingly.
● Look for the right borrowing amount by saving more than you can. If you pay a good part of the property price as a down payment, the loan amount will be low and the EMI amount will be low too. There will be no burden. Apply for a small business loan.
● Choose the right loan provider that has the best rate for you and the charges are low. The market will have a lot of options, so choose according to your budget.
● Get the right loan tenure as a lot will depend upon the term of the loan. If you select a long-term loan, you will get a low EMI amount each month. For a short-term loan, the EMI will be high. So, decide the tenure based on your ability to pay the EMI.
● Meet the eligibility criteria to get the best rate on your home loan. The eligibility criteria has the perk of giving you the lowest cost of loan. It will help you get the best rate of interest and keep your EMI under control.
● Take a home loan only when you have a good income. Increase your source of income before you take up a house renovation loan. A good income will reduce the burden.

Finishing up

The home loan interest rate can have a drastic effect on your EMI. Research well and keep your eligibility criteria right to get a low interest house renovation loan.

Read More: Reasons Why Your Home Loan Application was Rejected

Author's Bio: 

I am Ajay Singh, former Finance Advisor with more than 8 years of experience. I am a passionate trader, investment advisor and would love to help people in thier financial decision making.