How To Negotiate For Better Home Loan Rates In India?
When looking for a loan, you should understand that you are the customer. You are what financial institutes want. They need to give you the loan. This is the right attitude to have when you begin considering home loan rates and various lenders. Most borrowers over-extend their time in research and application. Therefore, they end up in a situation, where they believe that they don’t have a choice but to sign on the dotted line. There are smart and strategic ways to get lower interest rates on housing loans, though. Understand your value and try implementing some the following ideas:
• Look around
When you plan to buy a new property, you need to contact a lot of lenders. Banks and housing finance companies should know that they are not your only option. Several lenders create customized house loan packages with the home loan interest rates that you will accept. Your acceptability is important to get you as a customer. If they understand that you are not desperate and are looking for a mortgage partner that is agreeable, they may offer the best home loan interest rates that they can and you will be in a position to accept or reject as you have multiple options. Both, interest rates and home loan companies in India, are very competitive. You should know how to use this fact to your advantage.
• Hire a broker
After you check out the market, you must approach select housing finance companies in India via a certified agent or broker. This establishes a stronger sense of competition. There are benefits and limits to this approach, though. Brokerage expenses get added to the list of potential expenses; however, it is well worth it if you are considering a sizable number of lenders for a housing loan. You will definitely get the lowest housing loan interest rates in India if you can leverage the relationship of the broker and the lender.
• Monetize your strengths
This seems generic. Yet, in this particular case, it implies that as borrowers, you have several points that can be used to your advantage. So, it is important that you know them to use them well. Here are some examples:
o Credit score: It is a trump card in the hands of right player. Use it well.
o History with the bank: Do you have a long standing account with the bank? It gives your bank a unique and trustworthy insight into your operations and credibility. It can be a great foundation for rewarding negotiations.
o Use your repayment track record well: This implies that you can ask for better home loan rates after signing on the dotted line. It is not impossible. It depends on your proposition and your way of asking.
