7 Essential Tips to Lower Your Home Loan Interest Rates

7 Essential Tips to Lower Your Home Loan Interest Rates By Priyanka Roshan, Aug 12, 2024

[{"selector":"#anim-54dbd120-d319-4a78-8083-e5bb0fe06bbd","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-afc716cc-65de-4824-b617-2b638f2c4d4e","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Planning to buy a house but worried about high home loan interest rates? Don’t fret—there are effective strategies to lower them and make your home purchase more affordable. (Image: Canva)

[{"selector":"#anim-57972b9e-668e-47a8-b1e6-7c014bf38990","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-05c8ffae-c772-4179-bc2c-b3ce25c354fc","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Here are seven key tips to help you secure a better interest rate and save money on your home loan: (Image: Canva)

1. Boost Your Credit Score

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2. Select the Optimal Loan Tenure

[{"selector":"#anim-59bb1327-e803-44d4-9ca8-acf4f1cce16b","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d2063d9f-0598-46b7-9208-c1ac2ca44f10","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c5c7a5d1-769e-44f8-8859-86f5d1f9833c","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Choose a loan term that balances affordability with interest savings. Shorter terms typically offer lower rates, but ensure that the higher monthly payments fit your budget. (Image: Canva)

3. Negotiate with Your Lender

[{"selector":"#anim-36b2f47d-58fc-430a-ac13-15ee7388b400","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-23fbb4cd-c3f3-4ba4-af0c-355fc053aec5","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d4563389-5b3b-4c50-8ebe-804d516fd7bf","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] (Image: Canva)

4. Increase Your Down Payment

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5. Choose a Floating Interest Rate

[{"selector":"#anim-b38d7209-96c1-433c-b7c0-50927854314c","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-73fba999-460e-41a3-897f-3d231527924a","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-23f3c709-26c9-4eb3-b5f2-1b9095360630","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Opt for a floating or variable interest rate, which can be lower than fixed rates, especially if market rates decrease. Assess your financial situation and risk tolerance before choosing this option. (Image: Canva)

6. Consider Transferring Your Home Loan

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7. Make Regular Prepayments

[{"selector":"#anim-e0b46475-5af8-432d-b878-99f4fa29ebf5","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-161920d4-5071-4ed1-a213-8ac968516fe7","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ce85ac2f-6019-4013-8888-563a08d34a1e","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Prepaying a portion of your loan can reduce the principal balance and potentially lower your interest rate. Regular prepayments can help you save on interest over the life of your loan. (Image: Canva)