Understand how transferring your home loan balance can save your EMI up to 13%
A home loan balance transfer enables you to transfer your outstanding balance to another lender.
While opting for a balance transfer facility that provides, a few basic features like interest rates and foreclosure options must be looked for to reduce the EMI or lump sum by huge percentages.
There are many ways this transfer affects home loan repayments and the most influential ones are discussed underneath.
One of the crucial ways home loan balance transfer can reduce your home loan EMIs is by decreasing the rate of interest. You may come across another lender offering lower rates. In such situations, transferring your home loan can be exceptionally beneficial.
Not only will it reduce your EMIs but also your total cost of the loan. However, make sure to check the rates and charges applicable on balance transfer before you avail this facility.
Numerous NBFCs come up with schemes and offers which offer financial benefits like top-up loan options and its likes. These added features can be very instrumental in deciding the transfer, as can these features also influence the EMIs to be paid.
Some financial institutions offer longer tenures. Increasing your home loan tenure will decrease the EMIs. However, the same will also increase the cost of the loan.
The above are the most common ways in which interest rates are influenced by transferring a home loan from one financial institution to another.
Additional Read: Points Worth Considering Before Opting for a Home Loan Transfer
