The mortgage interest rate is an integral part of getting a home loan. It has a direct impact on our equated monthly installments (EMIs). Although the mortgage interest rates are lower compared to other secured loans in the market, it can still put a burden on your monthly budget. So, while getting a mortgage loan, you will have to make sure that you are getting a rate that best serves your needs and preferences.
Here are the top ways to get the best interest rate on your property mortgage loan:
Check your credit score and credit report
The first thing you can do before applying for a property mortgage loan is to report inaccuracies on any item that is hurting your credit score. If you find any discrepancies, you can open a dispute online or send an email to the Bureau of Credit. Also, make sure that you have maintained a healthy credit score to secure the best mortgage interest rate.
Make a larger down payment
When you make a small percentage of the property’s value as a down payment, the lender considers you a risky borrower. Your lender will offer a higher interest rate to justify the risks involved. So, make sure to make a larger down payment while getting a home loan.
Go for a short-term loan
The home loan tenure ranges between 3 to 30 years, allowing you to make easy repayments. A longer loan tenure increases the interest in the long run. So, if you have the budget, it is better to choose a short-term loan and reduce any financial burden.
Show increased income
Your income is one of the crucial factors considered by lenders to determine an interest rate. If you wish to get the best mortgage interest rate, you will have to prove that your monthly income will increase shortly.
Additional Read: Different Types Of Mortgage Loans Available in India
