Financial\ninstitutions now provide home loans up to 95% of the property value. This\noffers the advantage of not having to use much of your own money. However, it\nalso means that your loan amount, tenure and interest cost rise\nsignificantly. <\/p>\n\n\n\n
A home loan EMI calculator<\/a> will give you a\ndetailed breakdown of the principal and interest you will pay during the term\nof the loan.<\/p>\n\n\n\n By making a\nlarge down payment – through savings or sale of other assets – you can bring\ndown your home loan EMI and tenure.<\/p>\n\n\n\n Additional Read:<\/strong> How to Reduce Home Loan EMI – Tips and Tricks<\/a><\/p>\n\n\n\n Through the\ncourse of the loan, if you have additional savings or chance upon windfall\ngains through bonus, commission, gifts, etc., you can use the funds to make an\nadd-on contribution to your home loan besides the standard EMI. This lump sum\ninjection will bring down the outstanding amount and shorten the tenure.<\/p>\n\n\n\n Irrespective of\nyour initial choice, many financial institutions allow you to switch between\nfixed and floating interest rates through the term of the loan for a small fee.\nYou may not be able to switch often, though. Hence, evaluate the economic\nscenario and take a call only if your savings are going to be substantial due\nto a switch.<\/p>\n\n\n\n As you progress\nin your professional life, your income potential rises. Some financial\ninstitutions offer a Step-Up Flexi EMI option that allows you to pay more as\nyour income grows. In such a scenario, you have the option of progressively\nincreasing your EMI. As the EMI goes up, the overall loan amount and tenure\nreduce at a faster rate.<\/p>\n\n\n\n If you receive a\nlarge sum of money by way of inheritance, sale of an asset, liquidating an\ninvestment, windfall gains, etc. you could pay off the entire home loan<\/a> before the tenure. Some foreclosure\ncharges might be applicable based on the outstanding principal amount in\naddition to government taxes. However, Tata Capital does not levy any\nforeclosure fee if you use your own funds to prepay the loan. Be smart;\nchoose a flexible loan partner that helps you fulfil your dreams on your own\nterms.<\/p>\n\n\n\n Additional Read: <\/strong>Home Loan Prepayment: Top Things to keep in mind before prepaying<\/a><\/p>\n\n\n\nMake lump sum instalments often<\/strong><\/h2>\n\n\n\n
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<\/figure>\n\n\n\nSwitch between fixed and floating interest rate<\/strong><\/h2>\n\n\n\n
Take advantage of a Flexi EMI option<\/strong><\/h2>\n\n\n\n
Foreclose the loan<\/strong><\/h2>\n\n\n\n