Hence, opting for a lower LTV ratio will reduce the home loan amount and thereby, will lead to lower EMI and interest cost. “As a lower LTV ratio reduces the credit risk for the lenders, they charge lower interest rates from home loan borrowers opting for lower LTV ratios. Opt for a longer tenureNew home loan borrowers can reduce their EMI burden by opting for a longer tenure. Chaudhary said, “A longer tenure leads to lower EMI and higher interest cost, whereas a shorter tenure results in bigger EMI but for a lower interest cost. Opting for longer home loan tenure would increase chances of getting the home loan application approved due to the higher EMI affordability for the home loan borrower.

Source: Mint May 25, 2021 06:45 UTC