Once you avail of a home loan, the repayment is bound to affect your outlays for a long time.

Many people go for a smaller tenor to save on home loan interest charges and pay the lower home loan EMIs.

But, it affects their monthly outlays. Even new customers want to know ways to reduce home loan EMI.

Read on and know a few handy tips!

1. Make a higher down payment

While applying for a housing loan, you should aim to put down a higher down payment amount. This way, your loan borrowable amount will reduce, so will the home loan interest rate charges. And once that happens, you will be able to pay the lower home loan EMIs. A general thumb rule is 15-25% down payment amount – you should pay more than this.

2. Negotiate with your current lender

If you have been regular with repayments, you should negotiate with your lender for a lower rate. Home loan interest rates have fallen during COVID-19 time, and you should make the most of it. If done, you can pay the lower home loan EMIs.

3. Go for a longer tenor with prepayments

You can also opt for a longer tenor to spread the loan cost and pay reduced housing loan EMIs. But you should also make prepayments during the tenor to save on home loan interest rate charges.

4. Opt for a home loan balance transfer

If none of the techniques works to reduce your home loan EMIs, you should transfer your active home loan to another lender offering a lower rate. This way, your interest charges will go down to help you to pay the automatically lower home loan EMIs. It will also let you to avail of a large top up loan manage other expenses without restrictions.

By implementing any of these tips as per your preferences, you should be able to reduce your home loan EMIs considerably.