The advent of technology and its penetration into the various spheres of the world has made life much simpler. The housing finance sector has also witnessed a major change in the way things work. People had to previously physically visit their lender’s office at least a few times before their home loan application was approved. Fortunately, today, the entire home loan process can be completed online. In fact, home loans on WhatsApp have also been made available by lenders. Though the process of availing of housing finance has become easy, the fact remains that home loans are a long-term commitment and a loan product that involves substantial funds. Therefore, it is of utmost importance that loan borrowers avail themselves of an affordable home loan. Through this article, we aim to apprise our readers of the simple things that housing loan applicants can do to secure an affordable home loan. 

Simple Tips on How to Secure an Affordable Home Loan 

An affordable home loan is essentially one whose EMIs you can comfortably afford and therefore, loan repayment is entirely stress-free in the case of these loans. Low home loan interest rates make home loan EMIs affordable. Therefore, those aspiring to secure an affordable home loan must essentially try and secure a low-interest rate loan. Let us now look at simple things loan borrowers can do to secure affordable housing finance. 

1. If you want to secure yourself the lowest home loan interest rates, you must study the market properly. Talking to different banks and NBFCs and analyzing their offers will allow you to correctly evaluate the market and the loan terms and conditions that you can get. It will also allow you to negotiate for the most lucrative loan terms and conditions on your home loan. 
2. Those planning to secure housing finance to fund their property purchase must also check their CIBIL score report at least a few months prior to when they want to apply for a home loan. A CIBIL score above 750 will encourage banks, NBFCs and commercial lenders to sanction you a loan at low home loan interest rates, primarily due to your exemplary repayment history and the fact that you have exhibited a responsible attitude towards debt repayment through and through. However, if your CIBIL score is below 700, you must immediately start practising financial discipline to ensure your CIBIL score reaches at least the very good range (750 to 900) by the time you apply for a loan. 
3. For home loans, lenders require borrowers to pay a down payment. The down payment is a percentage of the home’s total value that must be paid by the loan borrower. Lenders ask for a down payment to minimize the risk of loan default by ensuring that the loan borrower has at least some stake in the property. The higher the down payment you make, the lower will be the risk for the lender. Therefore, a high down payment gives borrowers high negotiating power, allowing them to demand a low home loan interest rate. 
4. A stable income and job will also encourage your lender to consider you for low home loan interest rates. People with stable jobs have stable incomes and can generally be trusted with the repayment of loan money on time. Consequently, a stable job also helps borrowers secure a low rate of interest on home loans. 
5. The Government of India offers several lucrative schemes to help people afford a home. For instance, the PMAY (urban) scheme offers interest subsidies on home loans to people in low-income and middle-income groups. The PMAY (Rural) aims to ensure that people in rural areas have access to affordable housing. Many other state government schemes also help people looking to invest in affordable homes by offering them interest subsidies on their home loans. See if you qualify for one of these loan government schemes.
6. If you are already repaying a home loan and think that your current credit profile makes you eligible for better or lower home loan interest rates, then you must consider opting for a home loan balance transfer. This facility will allow you to transfer the remaining balance on your home loan to another lender who has agreed to refinance the loan at a lower rate of interest. Internal home loan balance transfers is when a loan borrower switches to a lower home loan interest rate with their current lender; an external balance transfer is when one transfers the entire loan to another lender.   

Securing an affordable home loan will make life much easier for you. So, make sure to use the information shared in this article to secure yourself the best loan terms and conditions.