A home loan balance transfer offers one the facility to choose a financial institution that offers an improved rate of interest or loan facility over an existing one. This choice can save you from paying high monthly installments, help you enjoy home loan tax benefits, and utilize the savings for your professional and personal needs. Read on to know more about home loan balance transfer.
Top Advantages of Home Loan Balance Transfer
Lower Interest Rate on Home Loan
With any standard home loan balance transfer facility, you can achieve lower rates of home loan interest and flexible home loan repayment tenor. Take advantage of the facility to save more and repay the home loan faster.
A Healthy Track Record of Debt Payment May Get You a Decent Rate of Interest (ROI)
Your track record of making systematic loan repayments, good CIBIL score, and other financial habits can help you obtain a lower rate of interest.
Flexible Loan Repayment Tenor
Most home loan balance transfer facilities offer a flexible home loan tenor and a reduced rate of housing loan interest. These features boost easy and convenient repayment of home loans as well as enhanced savings.
Low monthly EMIs
The home loan transfer facility provides the advantage of lowered rate of home loan interest that leads to lower monthly housing loan EMIs. By availing of the home loan transfer facility, you can increase your monthly savings.
When and Why Should You Apply for a Housing Loan to Take Over?
If your current financial lender is charging a high interest rate on home loan and you want to repay your loan by opting for a lower rate of interest, then you can consider applying for a home loan balance transfer facility with another lender. You can check out the Bajaj Housing Finance Limited home loan transfer facility if you desire a reduced ROI and flexible tenor.
Things to Check Before Going with a Home Loan Balance Transfer
Consider the following situations to opt for a loan balance transfer:
• If a Financial Lender Is Offering a Lower Interest Rate on Home Loan
An interest rate on a home loan varies from one lender to another. A small difference in the home loan interest rate can make a huge difference in the monthly installments. Thus, borrowers must opt for a home loan balance transfer when they are getting a more affordable and relatively lower home loan interest rate than the earlier one.
• If You Are Getting Suitable Costs and Terms and Conditions
It is essential to check the cost of transferring a home loan to a new financial institution. This includes fees charged by the new lending institution. At the same time, borrowers may need to pay penalty charges too for closing the home loan account before time. Thus, do a cost-benefit analysis first, and then apply.
Besides, individuals must look for hassle-free terms and conditions as well as minimal document requirements while transferring their current home loan.
• If a Considerable Number of Years Are Left
Individuals can benefit from a home loan balance transfer during the initial years of borrowing a home loan in India as the cost of transferring a housing loan may be higher than the amount an individual can save after the transfer. For instance, if the home loan tenor of a home loan is 25 years, the ideal time to make the most of the facility is between the first five to eight years.
• If You Have Pre-Approved Offers
Individuals looking to avail of a home loan balance transfer must look for financiers giving pre-approved offers. Some financial institutions offer such a facility to save time by streamlining the loan application process. Aspiring borrowers can submit their names and contact information to check pre-approved offers.
Check out the current repo rate and any standard home loan calculator to estimate how much you can save by availing of Bajaj Housing Finance Limited’s home loan balance transfer. You can also visit our official website to find more information about our interest rates on home loan and other information.
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