Tips To Manage Home Loan

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Manage Your Home Loan

• Tips Tricks On How to

Prepared by
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Step 1 - Pick the right plan

• Before you pick a mortgage plan, ask yourself the
  following questions
• What are the factors likely to affect your
  approval for the loan?
• Is this mortgage plan portable?
• Are there any pre-payment privileges?
• Once a plan is selected and the home is
  purchased, the next several years will require
  you to pay monthly installments called EMIs. EMI
  payments may strain your finances, to avoid that,
  carry out the following steps!

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Step 1 - Pay your EMI on time

• Avoid late payments as it leads to spending more
  money. Do the following
• Set reminders for all your EMIs
• Or program your account to pay the EMI
  automatically
• Maintain sufficient balance in your account for
  EMI payments
• Watch the penalties

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Step 2 - Do not lengthen mortgage term

• Avoid selecting a plan with very low EMI
• Longer the mortgage term, the more money you will
  spend
• If you earn some extra money, put it into your
  mortgage
• Do the following to reduce mortgage tenure
• Partial pre-payment
• Pick a lower interest rate
• Increase the EMI amount

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Other Miscellaneous Tips

• Avoid pre-fixed rate mortgages
• Money lenders will try to extend the tenure to
  make more money from interest
• Paying off your mortgage quickly is a tax free
  form of investing
• Switch to an offset mortgage if possible
• Find additional sources of income
• Avoid reducing EMI amount

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