Buying your own home is everyone's dream, but high home loan interest rates make this dream expensive. The burden of EMIs often weighs heavily on the pocket for years. But if you show a little prudence, a home loan can be made significantly cheaper. The best part is that these methods have been suggested by the government-owned bank PNB itself. If you are planning to take out a new home loan in 2026, these 7 tips can prove to be a game-changer for you.

7 Surefire Ways to Make Your Home Loan Cheaper
Pay a Higher Down Payment, Earn the Bank's Trust

If you make a larger down payment when buying a house, your loan amount decreases. A lower loan amount means less risk for the bank and a higher chance of getting a lower interest rate. Banks usually offer better rates on home loans up to Rs. 35 lakhs, so try to make a larger down payment.

Choose the Right Loan Tenure, Keep EMIs Under Control
Taking a long-term home loan (20-25 years) reduces your EMI. This also assures the bank that you will be able to repay comfortably. Although the total interest may increase slightly, it makes managing cash flow easier.

Fixed or Floating? Choose Wisely
With a fixed rate, the EMI does not change for a few years, while the floating rate fluctuates according to market conditions. Nowadays, most banks offer cheaper home loans at floating rates. It is very important to understand both options before taking out a loan.

A Stable Job and Good Income Will Be a Plus Point
If your income is stable and you work in a government job, PSU, or a reputable private company, the bank considers you a low-risk customer. In such a case, you can get a home loan at a lower interest rate and better terms.

Build a Credit Score of 750+, Open the Door to Cheaper Loans.
A credit score is the biggest criterion for banks. If your score is 750 or more, the bank approves your file immediately. You can easily improve your score by paying your old EMIs and credit card bills on time. Make the female applicant your 'trump card.'
Most banks offer interest rate discounts of up to 0.05% to female home loan applicants. If a woman in the household is made the primary applicant, you can save not just thousands, but lakhs of rupees over the entire loan period.

Keep an eye on balance transfers and offers.
If you are getting a cheaper interest rate offer from another bank, you can opt for a home loan balance transfer. Additionally, during Diwali, the New Year, or special schemes, banks often waive processing fees or offer interest rate discounts.

Things to remember before taking a Home Loan
Your EMI should not exceed 30-40% of your income.
Read the loan documents and charges carefully.
Don't make a hasty decision; always compare offers.

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.