Reduce the Impact of Hiking Interest Rates with Home Loan Transfer

Picture this!

You waited all your lives to buy a home after many rounds of research and availed a Home Loan to fund your dream. You also did a calculation of the Home Loan EMIs which will affect your monthly income for a long period of time. Somehow, you thought you would be able to manage the loan EMIs and opted for a fixed interest rate.

What will be your condition if one fine day you come to know that your house loan interest rate is no longer fixed and have become variable? It will mean that you will have no other option but to pay a higher loan EMI.

But still, you can save some money by opting for none other than the Home Loan balance transfer facility. Yes, a balance transfer can easily help you transfer your Home Loan account from your lender to a new one offering lower rates.

Thus, housing loan customers who are concerned about paying a higher loan EMI can avail of the facility of balance transfer and enjoy paying lower EMIs.

home loan transfer

What is a Home Loan Balance Transfer Facility?

A Home Loan balance transfer is a profitable deal if you are baffled by paying higher loan EMIs. You can simply switch your existing House Loan account from one lender to a creditor offering a better rate.

The major reason why Housing Loan customers opt for the balance transfer is to lower their Housing Loan interest to pay lower EMIs and also to enjoy better customer services.

For using the balance transfer facility, your existing lender will ask for a processing fee which you will need to pay. The processing fee could be 1% of the remaining loan principal amount. If you observe that the processing fee for availing of the House Loan balance transfer is more than what you will save, you should not opt for it.

What are the Benefits of the Home Loan Balance Transfer?

Here’s how the Home Loan balance transfer can provide you with many benefits and make your Housing Loan an affordable deal:

  • Helps to Bring Down your Home Loan Rates

The most evident benefit of the Home Loan transfer is none other than the offering of the lower interest rate. When you are able to lap up a lower Housing Loan rate, you can easily pay off lower EMIs as well which means seizing up savings.

  • Better Repayment Conditions

With each lender having different terms and conditions attached to a Housing Loan, it is worth considering the balance transfer if you are getting a good deal.

  • Prepayment and Foreclosure Fees

The prepayment and foreclosure charges are the two important fees associated with any House Loan. Lenders also charge some amount when you prepay and foreclosure the House Loan before the scheduled tenor. It is a vital consideration to check while analysing the cost-benefit analysis for your balance transfer.

  • Top-up Loan

When you do a Home Loan balance transfer, your new lender also offers a Top Up Loan worth Rs.50 lakh to fund other financial goals in life. The top-up loan comes at a lower rate and extended tenor so that you don’t feel that you are repaying another loan.

The Bottom Line

Don’t let the rising Housing Loan rates haunt your income. Instead, assess your needs and apply for the Home Loan transfer online and get set to save money!

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