Housing loan customers may need to opt for a loan refinance to avail lower rates during their repayment tenor. Home loan balance transfer or refinancing refers to the process of switching lenders mid-way through the credit tenor.
While a home loan balance transfer calculator might prove to be a beneficial option for borrowers to estimate the benefits of a transfer, certain things need to be known about it.
Eligibility criteria
Someone who has paid a minimum of 12 EMIs and possesses an impressive credit score can be considered a fit candidate for home loan transfer eligibility.
Reasons to opt for a home loan balance transfer
The most common reasons include the following:
- Availing lower interest rate.
- Pre-approved offers.
- Revised terms of repayment.
- Better offers.
When is the most sensible moment to opt for a home loan balance transfer?
A home loan take-over would make the most sense on the following scenarios:
- When the overall cost gets reduced.
- When a significant portion of the loan amount is remaining to be paid.
- When there is a longer tenor available for the remaining home loan amount.
What are the benefits of a home loan balance transfer?
The benefits of a home loan balance transfer include:
- Top-up loan.
- Longer tenor.
- Lower EMIs.
A home loan transfer process is simple. However, one should be aware of its various aspects. The above guide would prove to be a one-stop solution for anyone seeking a refinance.
