At the beginning of new year 2021, home loan interest rates are at historic low. Home loan interest rate is beginning from 6.75 onwards — a delight for the first time homebuyers. However, home loan interest rates being a historic low doesn't make one's home work easy. There are various steps that need to be taken by the homebuyer to keep one's home loan outgo at the lowest EMI.

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Speaking on the pre-planning in regard to the home loan application SEBI registered tax and investment expert Jitendra Solanki said, "First and foremost thing that a home loan applicant must do, is to find out a bank wise list of home loan interest rate. After finding out the bank, one must check one's CIBIL Score as it plays a major role in home loan approval. If the CIBIL Score is 750 or above only then there are chances of one getting one's home loan approved."

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Asked about the top 5 tips that would help home loan applicant to keep one's home loan EMI outgo at lowest level, Solanki listed out the following:

1] EMI Affordability: One should be well aware about one's EMI affordability. While applying for the home loan, one should choose the longest tenure to keep the EMI at its lowest level. It helps the home loan borrower to have a breathing space in the first two-three years of the home loan repayment. But, after three years or may four years, when one's income increases, one should repay some part of the home loan and keep the EMi at the same level bringing the home loan repayment tenure below. It wont' charge any additional amount as home loan repayment is free from any charges. Doing the same again after three four years,will help loan borrowers to close the home loan much before the actual tenure of the home loan.

2] Make your wife co-borrower in home loan: Most of the time, banks give some additional interest rate benefit to woman home loan applicants. So, if you have made your wife a co-applicant while applying for a home loan, it will help you avail this additional benefit leading to lower EMI.

3] Higher down payment: When a first time home buyer is going to apply for a home loan, its objective should be to take a minimum amount of home loan instead of as much as he can get from the bank. For that, the home loan borrower should try to give a higher amount for down payment. Higher amount of downpayment leads to lower amount of monthly EMI.

4] Bargain hard to get a better deal from your lender: It has been found that home loans are available at a particular interest rate range. To get the minimum interest rate, the loan applicant needs to check out the exact interest rate being levied on him before the home loan approval (in fact, before the loan application process). When the loan applicant is checking about one's home loan interest rate, he or she should be well aware about the interest rate available at other banks. Sometimes, this hard bargain leads to lower interest rates being levied that finally helps you save your hard earned money going wasted in the form of higher EMI.

5] Transfer of Home Loan: It has been found that those who have availed home loans four-five years ago, are paying higher home loan interest rate. For such home loan borrowers, it's high time to contact their bank and ask for lowering the home loan interest rate. If the bank declined to do that, then they have an option to switch their home loan EMI to another bank. In that case, the new bank will levy a home interest rate of the current time, which is at historic low.