Home Loan Balance Transfer is an option by which you can switch from one lender to another for benefits like lower rate of interest, lower tenure, etc.
Process of Home Loan Transfer:
- Balance Transfer of your home loan is equal to the process of obtaining a new loan.
- A new lender or loan giver takes over your home loan and pays the outstanding amount to the current lender.
- After receiving the amount, the existing home loan provider releases the property documents and hands it over to the new home loan provider along with a no due certificate.
- Once the process is complete, you start paying EMIs to the new loan giver as per the new interest rates.
Home loan balance transfer provides an array of benefits:
1. Lower Interest Rates and EMI:
The main reason for which most people opt for this scheme is the reduction in the Rate of Interest which in turn leads to lower EMI. Good repayment track record may get you good Rate of Interest (ROI).When opting for transfer, you can negotiate the terms and conditions of your home loan by citing your track record of payments, your credit score, and other points.
2. Reduction in Overall Tenure of Home Loan:
Lower interest amount is needed to be paid due to lowering of interest rate. This may result in the reduction of the overall tenure of your home loan.
3. Top Up Loan:
Get a Many Home loan Providing Institutions offer a top-up loan when you transfer your home loan to them. You can avail these loans at competitive rates and use them to pay off your immediate debts or use it for home renovation.
Your current lender might not offer this top-up loan even when there is an increase in the market value for your home.
4. Hassle Free Documentation Process:
Nowadays, transferring a home loan has become an easy process as banks have embraced modern technology. All information about the borrower, including their credit score, is available online. This reduces the hassle of documentation and you can avail home loan balance transfer easily. Managing monthly expenses along with a running Home Loan EMIs may cause financial stress especially when you pay a higher interest rate. To avoid such hassles, opt for home loan balance transfer to enjoy lower rates and shorter duration of EMIs or tenure.
5. Other Benefits
Your credit score may increase by transferring your home loan
You can even opt for a home loan balance transfer if he/she is not satisfied with the services of the existing lender.
One can also reduce or increase the tenure period of their home loan with a new lender when going for a home loan balance transfer.
Opt for Home Balance Transfer and Reduce your Monthly EMI
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