1. Increase your EMIs
An annual increase in your EMIs can considerably bring down the tenure of your home loan, leading to lower interest payments.
For instance, by increasing your EMI by 10% annually, you could bring down the tenure of a 20 year loan to less than 10 years.
2. Avoid extending tenure during the initial period.
Since EMIs paid during the initial period of the loan tenure consists of higher interest component, it is advisable to avoid extending the tenure in the beginning.
3. Switch to a fixed rate when interest rates are low.
As per the RBI guidelines, lenders now have to give options to borrowers to switch from a floating rate to a fixed rate on each interest revision.
Switching to a fixed rate of interest when interest rates are low can ensure that you secure yourself an interest rate which may not be offered by the markets in future.