A home loan balance transfer is the method of transferring any unpaid home loan amount to a different lender. This usually helps when the other lender is offering a lower rate of interest than your existing lender. Transferring your home loan balance to or different bank or housing finance company is helpful only when the other lender is offering a lower rate of interest. that way, you will not only save on interest but also pay lower EMI amounts.
Discussed below are some of the most important benefits that you can enjoy by availing a home loan balance transfer facility.
Although your lender might offer you a top-up loan for your existing home loan, once you transfer the balance to another lender, your new lender is highly likely to provide you with a top-up loan at a lower rate of interest.
That said, do not opt for a home loan balance transfer without checking all other relevant details of the new lender. For example, check the eligibility criteria for loan approval of the new lender. In case you need a top-up loan, this might be one of the most significant things to look into. In addition to that, do not forget to check all other relevant fees and charges such as foreclosure charges and pre-closure charges. More often than not, you might want to avail one of these features in case of a home loan and if the charges are too high, you might have to end up paying a lot.
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