Six factors you should look at before transferring your loan

 Are you a home loan customer whose current home loan interest rate is on the higher side? 

If yes, you don’t have to suffer anymore. It is because you can always switch your home loan to a new lender offering a lower rate. 

This facility is available under the home loan balance transfer. 

But before you do that, you need to consider a few things. Doing that can help you approach the loan transfer easily. 

Read on and explore more!  

1. Are you even eligible for the home loan balance transfer?

The first thing to check is if you are even eligible for the transfer. It is because your current lender may not allow it. Thus, it becomes a must to know it beforehand. 

2. Check the overall cost of transferring the loan account 

You should also know about the cost of making the switch. It is because if it is more than what you will save, then it is not worth going for it. 

3. Know how much loan term is left 

You should know about the loan term left because doing it during the latter part of the term is not recommended. You should go for the home loan balance transfer during the early part of the tenor. It is because you will be paying less interest when you switch it. 

4. Ensure you have all the documents needed 

You should always ensure that you have all the documents required by your lender while transferring the loan account. 

5. Know if the new lender is worth the shot 

You should go through the reviews of your new lender before opting for the home loan balance transfer. Look at the big picture and be sure that you actually get all perks of choosing a new lender. 

6. Go through the loan terms and conditions 

The last thing is going through the terms and conditions of your new creditor and knowing about all aspects. This way, you can easily avoid getting unpleasant shocks later.      

If you are able to consider these things, then the home loan balance transfer will be a hassle-free affair.