There are a number of reasons for property investment in Trivandrum; as the capital city of Kerala, it has a number of notable institutions in nearly every sphere. Be it healthcare, education, research, finance, or IT, the city boasts some of the best facilities in the country.. These factors make it an attractive place to live in, and hence there is tremendous demand for property here.
According to real estate market trends in Trivandrum, the prices of property are going up, and you would need a home loan to purchase the property of your choice. However, you must take care to reduce your loan rate so that you can be debt free soon.
Here is a guide:
Research
To know how much loan you should apply for, calculate your monthly expenses, compare it with your family income, and see how much EMI you can pay comfortably every month. Use a home loan calculator, and also compare offers from financiers. Check the interest rates, tenure, payment options, service quality and so on. Ask friends and family, and check reviews left by other home buyers.
Lower LTV
Getting a huge loan will allow you to buy a fancier or bigger property, but it also increases your debt and interest burden. A lower loan-to-value ratio means opting to apply for a lower percentage of the property value as loan. If a property costs 70 lakhs and the lender offers you 60 lakhs, but you can easily afford to pay 20 lakhs as down payment, only apply for 50 lakhs. This will reduce your EMIs and the overall interest you have to pay.
Co-Borrower
If your spouse, sibling, partner, or parent aged under 70 can be your co-borrower, you can take a higher amount as loan without having to bear the entire cost of the loan yourself. The property will be under joint ownership, and you can also get tax benefits under section 80C of the IT act. Consult a financial expert for specific details.
Higher EMIs
Go for a shorter tenure and pay higher EMIs – as high an amount as you can afford to pay each month. This will entail restricting your extra expenses, but it will help you be debt free soon.
Partial Payments
Whenever you have a little extra cash, use it to make a payment to bring down your principal directly, which will gain reduce your overall interest and monthly payments. This can also help you improve your credit score.
Balance Transfer
There may be financiers who are ready to take over your loan from your existing lender at better terms. Once you verify that they are genuine, you should not miss the opportunity to reduce your loan rate. You may get better interest rates, tenure, lower fees, and so on.
Negotiate
Before you sign the dotted line, negotiate hard so that you get the most favourable deal. Most banks have the power to be flexible with their terms, so use it to your advantage. Of course, this is dependent on you having a good income, credit score, and so on.
Conclusion
The future of real estate in Trivandrum is indeed bright, with even more infrastructure development projects on the anvil. The city is poised to become the most important IT hub of the state and indeed one of the best in the country. You can be certain that the demand for real estate in Trivandrum is going to rise even more in the coming future.
This is the best time to invest in Trivandrum real estate and one of the best builders you can trust is Varma Homes. As one of the leading builders in Kerala, you can be sure of superior construction, timely delivery, and adherence to norms of government agencies like RERA. Varma Homes apartments boast the latest and most outstanding amenities you would want. Check out the premium 2 and 3 BHK apartments in the most desirable residential localities of Trivandrum.
FAQs
How can I reduce my home loan interest rate effectively in Trivandrum?
Reducing your home loan interest rate in Trivandrum can be done through a few smart strategies. Start by thoroughly researching various lenders, their interest rates, tenure options, and repayment terms. Opt for a lower loan-to-value (LTV) ratio by paying a higher down payment, which reduces your overall debt and EMI burden. Another option is to include a co-borrower, such as a spouse or family member, to share the loan responsibility. Also, make partial payments whenever possible to directly reduce your principal amount, which can help lower interest costs over time. Finally, you can always negotiate with your lender for better terms if you have a strong credit score and stable income.
2. Is it beneficial to pay higher EMIs for a shorter loan tenure?
Yes, paying higher EMIs for a shorter loan tenure can be highly beneficial. By choosing to pay more every month, you reduce the overall duration of your loan, which significantly lowers the total interest paid over time. This approach helps you become debt-free sooner, though it does require strict budgeting and managing your expenses wisely. It’s ideal to go for this option if you have a stable income and can comfortably manage the higher monthly payments.
3. What is the advantage of making partial payments on my home loan?
Making partial payments on your home loan allows you to directly reduce the principal amount, which in turn lowers your overall interest burden. These extra payments shorten the tenure of the loan and reduce future EMIs, helping you save money on interest. Additionally, this can positively impact your credit score, showing that you are capable of managing and reducing debt effectively. This is a great option if you have additional income or savings you can put toward your loan.
Leave a Reply