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Here is How You Can Reduce Your Mortgage Interest rates

· Mortgage Loan

Individuals can avail loan against property by mortgaging their residential or commercial property and meet high-end expenditures. After assessing the current valuation of the property, the loan amount is determined. Usually, the loan to value or LTV ratio ranges between 75-90% of the property’s present market value.

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Moreover, several financial organisations in India provide property loans at affordable interest rates. Nonetheless, individuals can further decrease mortgage loan interest rates.

Tips to reduce property loan interest rate:

Even though lenders determine the interest rate on mortgage loans, individuals can reduce it by considering the following points.

  • Interest rates are different for various loan slabs. For instance, the rate of interest on a loan amount of Rs.50 lakh can be lower than in the Rs.25 lakh loan range. Thus, before opting for any loan amount, borrowers need to find a suitable loan quantum to limit repayment liability.

  • Tenors of a loan directly affect the rate of interest. Shorter tenors come with lesser financial risk for the lenders. Thus, it helps to lower the interest rate of a loan against property.

  • Various financial organisations offer different interest rates on mortgage loans. So, applicants should look for lenders who offer an attractive rate of interest.

  • Individuals should not apply for loans from multiple lenders at once since application rejection can decrease the CIBIL score. Consequently, a poor credit score can lead to a significant hike in interest rates for such credit.

Another crucial factor to remember here is that a borrower must ready mortgage loan documents before application.

Also, borrowers should always look for a loan amount that is affordable to them. By maintaining all these tips, applicants can reduce mortgage loan interest rates considerably.