Are high EMIs hampering your monthly budget?
High interest can have a direct impact on your personal finance, particularly when you’re burdened with a loan.If you’ve taken a Home Loan and your bank is charging a high-interest rate, then you can avert the problem by choosing a balance transfer option. Balance transfer of Home Loan means you can switch the loan amount from one bank to another.
This refinancing option will definitely help you lower your interest rate and make your EMIs comparatively affordable. And there are chances where you might also get certain additional benefits, such as additional top-up amount, insurance cover, and more.
Here is a step-by-step guide about what factors you should consider before Home Loan Balance Transfer :
1. Possibility of Home Loan Balance Transfer
First of all, before you start looking for new lenders to transfer your home loan, you should carefully read the terms and conditions provided by your current lender, as certain banks and financial institutions have a clause that restricts the transfer of home loan to another lender. So, if your lender has such a clause which prevents you from the same, then you are only left with the option to renegotiate your home loan interest rate with the current lender.
2. Negotiating for a Lower Home Loan Interest Rate
Another chance that you should probably take before opting for Balance Transfer is negotiating for a lower home loan interest rate with your current lender. This can be done on the grounds of good credit history and on-time repayment record. It is worth a try to consider negotiation as an option as some banks might agree to lower the interest rates in the concern of not losing customers. Also, if it turns in to your favors, it will save a lot of time, money and effort. There will be no need to run around for new formalities and documentation procedures.
3. Check your credit score
Your credit score gives you an indication whether you’re eligible for a balance transfer or not. Suppose you’ve been inconsistent in repaying credit on time, then it will hamper your credit rating. A poor credit score means you are less qualified for loan transfer facility, as the new bank will take into account your credit score along with the other factors.
4. Checking the Market for Affordable Interest Rates
Check for lower interest rates offered by various lenders available in the market. You could also try reaching out to certain preferred lenders to discuss better about your needs and get a personalized quote, which you may not find online. lowest home loan rate and hassle-free experience for home loan balance transfer connect with one of our home loan experts at MoneyPlus
5. Calculating the Cost of Transfer of Loan
Transferring your home loan involves several charges such as processing fee, legal fee, stamp duty charges, Notice of Intimation charges and more. Calculate if the total costs involved in your transfer are less than the interest amount that you will save by making the transfer or not. If not, you should look out for another lender or settle with the current one.
Recommendation
Avoid balance transfer loan if you’re nearing the loan tenure or planning to sell your home in future.
Key Takeaway
It is critical to thoroughly gauge the advantages and disadvantages of the transfer process before making the final call. In precise words, unless Balance Transfer brings long term benefits, you should consider sticking with your current home loan provider.
Apply for a home loan balance transfer through MoneyPlus to get a host of benefits such as lowest interest rate, minimal documentation and quick disbursement.
Call us today for free consultation. +91 7045667799
