Preplan Your Home Loan Repayment Schedule for Better Offers

A home loan is one of the easiest and most convenient ways of financing the purchase of a home. Under a home loan, a borrower mortgages their home with a lender, who, in return, lends the borrower money to buy a home. The borrower must pay back the loan over a stipulated period in the form of EMIs. The EMIs constitute a principal component and an interest component. 

If you are planning to take a home loan, you must make an informed decision and after much deliberation. A home loan is a long-term commitment, and therefore, you must plan your repayment in advance. To this effect, a repayment schedule can come handy. What is a repayment schedule? The repayment schedule is essentially a table that gives you details on how you will be required to repay your loan over the stipulated period. It also tells you how much EMI will go from your account every month and on what date.  

Access to a repayment schedule allows a borrower to chart their home loan journey. It allows them to plan their finances so that they can pay their EMIs on time each month without compromising their lifestyle. It also allows them to understand how they can use the prepayment and part-payment facilities offered by lenders to their best advantage. Further, when lenders see that a borrower has their finances worked out well, they extend better offers to the borrower. 

In this article, we look at how preparing an investment plan before getting a home loan allows a borrower to get better offers from their preferred lender. 

Here’s How Preplanning Your Home Loan Journey Helps You to Get Better Offers from Lenders

  1. An Investment Plan Helps You Borrow the Right Amount

The first rule of borrowing money is: never borrow more than you cannot repay. This applies to home loans as well. 

If you are planning to apply for a home loan, draw an investment plan. Check what your monthly income is and what your monthly expenses look like. Then, check which expenses are redundant and can be done away with. Doing this exercise will allow you to come at an EMI figure that you can comfortably afford. When your lender sees that you are borrowing an amount that you will easily be able to repay, they will show more interest in getting you onboard as a client and therefore, extend the best offers to you.   

  1. Opt for a Home Loan Balance Transfer

If you already have a loan running and are tired of paying high EMIs each month, primarily because your lender refuses to reduce your home loan interest rate, chalk out a new investment plan to understand whether a home loan balance transfer would be a good choice for you. 

A home loan balance transfer is a facility provided by most lenders under which a borrower can transfer their home loan from one lender to another in return for better interest rates, better services, and added facilities. A home loan balance transfer usually works in the favour of the borrower when done during the initial few years of a loan repayment cycle and when there is a considerable difference in the interest rate. If the new lender is offering you an interest rate that is only .05% lower than what you are paying currently, transferring your loan to the new lender won’t work in your favour. 

When you have a thorough investment plan, you can understand better what interest rate percentage difference do you expect from your new lender to be able to strike a lucrative deal. It also allows you to negotiate for better offers and terms and conditions from your new lender. 


In conclusion, if you are planning to apply for a home loan, make sure to sit down and chalk out an investment plan. This investment plan will not only allow you to get the best deals and offers from lenders but it will also allow you to understand what you can afford and how much to borrow. An investment plan will essentially ensure that you are never in a situation where your loan feels burdensome or you are unable to pay your EMIs.

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