How to repay home loan faster?

As a borrower, I know all you think of is how to repay home loan faster. It has happened to me as well so I took advice from a bank official and he was kind enough to share some helpful tips. Let me just list them here for you.

How to Repay Housing Loan Faster?

Here are some helpful tips on how to repay your home loan faster:

• Pre-Payments: Whenever you have extra money, use it to pay off part of your loan principal.

• Elevated EMIs: Increase your monthly payments as your income increases to pay off the loan quicker.

• Shorter Tenor: Choose a shorter loan term, which means higher monthly payments but a faster payoff.

• Balance Transfer: Switch your loan to another bank that offers a lower interest rate.

• Strategic Down Payment: Make a larger down payment at the start to reduce the total amount of the loan.

• Timely EMI Payments: Always pay your EMIs on time to avoid extra charges and interest.

• Capitalise on Tax Benefits: Use tax benefits available under sections 80C and 24(b) to save on taxes and use these savings to make extra payments.

These are some really helpful strategies to pay your home loan faster. Implement these and get rid of your debt in a short period.

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A home loan helps you purchase your dream home along and offers you great tax benefits. But you can’t deny the fact that it impacts your future as well as present finances. This is why you should pay off the loan ASAP by managing related factors such as monthly instalments and repayment tenure. Read below to know how to repay home loan faster:

One way to pay off your home loan faster is HLBT (Home Loan Balance Transfer), in which you move the outstanding loan amount to another lender that offers a lower interest rate. You should ensure the cost of loan transfer is not high in terms of charges like a loan processing fee.

One easy way to reduce your loan liability is by prepaying a home loan. It will eventually decrease the tenure of your loan. This will also help you a lot on the total interest pay-out.

Several banks offer maximum loan tenure of 30-40 years. During such a long period, your income is expected to increase, especially if you’re a salaried professional or if you’re in a profession where your income is expected to increase with time. You should try increasing your home loan EMI over time. Prepaying your house loan through higher EMI will surely decrease your outstanding loan amount.

You should go for loan tenure as short as possible so that you can repay your home loan quickly. You need to remember that it will require you to shell out a higher repayment amount since home loan EMIs are directly impacted by tenure. The longer the tenure, the lower the EMI, and vice versa. You should pick the loan tenure based on your financial condition so that you can easily pay the EMIs without affecting other financial goals as well as your lifestyle.

I hope now you know how to repay home loan quickly!