You have bought a new home and have taken a loan on it. You pay an EMI which in the initial years comprises mostly of the interest. Now remember, interest is an expense that you’ll bear every month till the end of the loan tenure. So it is very important for you to save on your home loan.

Here are some tips to help you save on the home loan.

• Opt for a floating rate home loan. Usually floating rate home loans are cheaper than fixed rate loans.
• Use the loan comparison websites. There are many loan comparison websites that compare the loan offerings from various lenders. Go through these offerings and select the lenders offering the lowest possible interest rates on the loan.
• Read the terms of loan carefully. Does the loan prohibit you from prepaying it? Will you have to pay prepayment penalty to change the lender or to speed up the loan tenure? Does your lender offer you the latest terms that it offers to its new customers?
• If there is no prepayment penalty, try to prepay the loan whenever you have some extra cash. This will reduce the loan tenure and free you from loan quickly.
• Check out the processing fee, insurance charges and other expenses. All these expenses add up and increase the cost of loan.
• If there is no prepayment penalty, try to change the lender. This is because with stiff competition in home loan market, lenders keep on offering innovative products that can ultimately save you money.
• Try to take the smallest possible loan amount. This is because smaller the amount lesser the interest you end up paying.