Each passing year and month, the trend of dual income families is rising in many states, especially urban ones in India. And the rise in standards of living involves many people taking housing loans to remove the stress of monthly rent to a landlord,
But it’s important for all home aspirants to not blindly believe any myth about housing loans, as it can harm your finances in more ways than one.
So here are some busted misconceptions to beware of.
Select the shortest tenure to pay the loan quickly
Many people who are interested in acquiring a Navi Home Loan are under the impression that they need to select the shortest feasible tenure in order to pay off the loan as soon as possible. However, in doing so, borrowers put further strain on their financial situations because a shorter loan tenure results in a higher monthly instalment payment (EMI). Because of the increased EMI to income ratio, having higher EMI payouts could cause a significant decrease in your monthly earnings and harm your prospects of being approved for additional credit in the future.
Borrowers should choose lengthier repayment tenures for easy EMI payments rather than increasing the number of their monthly instalments of principal and interest. Check the expected EMI amount by using Navi Home Loan EMI Calculator. Additionally, anytime they have surplus funds, they have the option of prepaying their house loan, either in part or in full.
There is no room for negotiating over the applicable interest rate
There are still some borrowers who adhere to the outdated belief that the interest rates provided for Navi Home Loan cannot be negotiated. That is not the situation at all. If you aren’t happy with the interest rate that the lender has quoted you, you can try to negotiate with the lender for a lower interest rate; however, in order to do so, you need to have a good reason. If you have a good credit score or a great capacity for payback, for example, you may be able to negotiate with the lender to give a cheaper interest rate and better service terms. In addition, if the lender does not agree to do so, you may want to think about switching to another lender.
You should think about going to online financial portals/websites if you want to utilize the tool of Navi Home Loan EMI Calculator and want to get a better bargain and locate the lender that is the best fit for your house loan. These platforms make it possible for you to easily compare and select from among the many accessible lenders, which will assist you in selecting the appropriate lender according to your requirements and your current financial situation.
Lender with the lowest rates is always the best
The interest rate on Navi Home Loan can range anywhere from around 7 percent to 10 percent, thus it is inevitable that interest rate will become one of the most important aspects to consider when choosing a home loan provider. Nevertheless, it should not be the only consideration in making a decision of this kind. Many borrowers arbitrarily choose the lender that provides the home loan with the lowest interest rate, without taking into consideration other aspects of the loan such as the services provided (for example, top-up loans), the terms and conditions, the maximum tenure, the repayment options, the modes of payment, etc.
Be sure to take into consideration all of these aspects when selecting a lender for your business, and go with the one that provides all of these services in addition to a competitive interest rate. Sometimes, a lender who offers a slightly higher interest rate may also be providing extra services and better conditions of service than a lender who offers a lower interest rate. This might be the case when comparing two lenders with identical interest rates.
A good credit score guaranteed housing loan approval
It’s a common misperception among potential borrowers that having a better credit score will make it easier to get approved for a mortgage loan. A high credit score will almost likely improve your chances of being approved for credit, but it will not necessarily ensure that you will be approved. The approval of your application for a Navi Home Loan is also contingent on other variables, such as the age of the borrower, their income, the ratio of their debts to their income, their work, and the profile of their employer, etc.
It is recommended that you use the online Navi Home Loan EMI Calculator before applying for a house loan. These calculators are available on the portals of a variety of online financial portals. It is not necessary for the borrower to submit an application for the loan and wait in confusion for a response from the lender because this enables the borrower to get a fair idea to determine whether or not they are qualified for the loan as per the EMI amount.
A rise in interest rates will immediately result in higher EMIs
When the RBI raises interest rates, the first thing that comes to the minds of many people who have taken out home loans is the fear that the monthly payments on their existing home loans would automatically go up, which will throw a wrench into their monthly budgets. This is merely an error in perception. If the interest rate on your loan is increased, your lender will likely offer to prolong the term of your loan in order to prevent a rise in the amount of your monthly instalment payment (EMI). However, because increasing the length of the loan term results in an increase in the total amount of interest paid, borrowers who are in a position to do so should pay the increased monthly instalment amount (EMI). You can decide by checking Navi Home Loan EMI Calculator to know the expected EMI amount for different tenures, rates, amounts etc.
Additionally, the increased interest rate will not take effect for your Navi Home Loan until the conclusion of the reset period. In addition, current borrowers have the option of using the home loan balance transfer facility if they are certain that they will make significant savings as a result of making this vital decision.