Go for a shorter loan period
Your loan repayment period is one of the primary factors responsible for the interest you will be paying. Longer loan periods say 25 to 30 years, will cut down the monthly instalment amount, shorter loan periods, say 10 to 15 years, will help reduce the overall interest payable.
Buyers can see for themselves how the interest gets reduced drastically for loans with shorter tenures by using a home loan calculator. It is critical before you sign up for a loan to choose the loan period carefully so that you do not end up paying higher interest against your loan.
Compare interest rates online
It is critical that you do proper research on loan products and compare rates before deciding on a particular product or lender. There are several third-party websites that can give you a clearer picture of the rates and other costs charged by different lenders.
Pay more on a down payment
Most banks and other financial institutions finance 75% to 90% of the total value of the property. You are required to contribute 10% to 25% of the remaining cost of the property. However, instead of paying the least, it’s better to contribute more from your pocket as a down payment. The higher you pay initially, the lower the loan amount is, which directly reduces the interest you must pay as well.