Smart borrower: you can easily keep an eye on your mortgage


Paying off a home loan is a long and expensive commitment, and tracking your home loan can help you spot hidden fees, pay off the loan on time, and save money in the long run. Here are some actions that can help you easily master your home loan.

Visit your online lending portal
When disbursing your loan, the bank gives you access to the home loan portal. This portal comes with a number of tools that help you track your EMI repayment, know current and past interest rates charged on the loan, outstanding amount, and other details related to your home loan. Whenever there are revisions to your loan, be it interest rate or terms and conditions, it is reflected here.

Check your loan statement
The loan account allows you to access an account statement which contains details of the loan from the time it started. Checking the statement regularly keeps track of what you have already paid and what remains to be paid. You will know if your EMIs are credited to your loan account on time. A home loan statement is useful for claiming the benefit of the tax deduction under Section 80C or Section 24.

Read the credit report
There are instances where the lender reports incorrect information to the credit bureau, which can negatively impact your credit score. Checking credit reports regularly can help you take corrective action if there are any discrepancies or mismatches in the information reported to the bureaus.

Consult the amortization table
Adhil Shetty, CEO of Bankbazaar.com, says, “A slight increase in the interest rate can make a huge difference in your overall repayment obligation. It is therefore crucial to monitor the interest rate charged and understand the impact of changing interest rates on the cost of the loan. Similar to the loan statement, the amortization schedule shows interest rates and past payments. It also shows the number of outstanding EMIs after the rate change and a detailed breakdown of the principal and interest components of the EMI.

Conditions of the loan contract
As the interest rate increases, borrowers can choose a longer term or increase their EMIs. If the borrowers do not approach the lender with a preference, the bank follows the default option according to the terms and conditions mentioned in the loan agreement. Typically, this is an extension of duration as opposed to an increase in NDEs. You must read the loan agreement carefully to closely monitor your home loan.

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