A home loan will allow you to buy your dream home without the stress of arranging money from other sources at a high interest rate or depleting all of your savings. Lenders are eager to provide home loans to qualified applicants at attractive interest rates, long term tenors, affordable EMIs, sizable sanctions, and the vast amounts of tax benefits of housing loans.

The monthly instalments (EMI) that you pay are one of the most important factors to consider because you will be paying this amount for the duration of your loan. Before applying for a home loan, you should do extensive financial planning because it is an expensive obligation, and if you are unable to repay the loan, you risk losing your property.  

Here are 5 ways you can reduce your EMI amount:

Repayment Tenor

Your Home Loan EMI is affected by the tenor period you choose, and if you want to lower your EMI, a longer tenor loan will help you. Although a long-term tenor will provide you with a lower EMI, which will allow you to repay the loan in a more comfortable manner, you will be paying a significant amount of money in interest.

Co-Applicant

If you do not meet the minimum home loan eligibility criteria and receive a futile offer with a higher rate of interest and larger EMI, you can apply for a home loan with a co-applicant such as your spouse, sibling, or children to share the financial burden and this can also help you reduce your EMI amount because the eligibility criteria is met by multiple individuals.

Existing Obligations

You should consider paying off your existing debts before applying for a home loan because a lender will view you as financially capable and responsible if you have paid off your outstanding debts. This will allow you to devote more than half of your monthly income to repaying your home loan, potentially lowering your EMI. 

Home Loan Balance Transfer 

If you already have a home loan, you can opt for a home loan balance transfer with a lender that offers you favourable lending terms and a lower EMI.

Comparing Offers

It is recommended that you approach multiple lenders to understand the current market trend for a home loan, and you can use a home loan EMI calculator to compare the offers you receive and shortlist the lender who is providing you with the most advantageous lending terms such as lower interest rates, longer tenors, and lower EMI’s.