Are you an active home loan customer and paying a higher interest charge? Do you feel there is no way out of it? If yes, you are not alone!
Many people continue with their ongoing housing loan accounts and lose money on repayments.
But they are unaware of the home loan balance transfer facility. This quick is about the basics of the home loan balance transfer. Read on!
What is the home loan balance transfer?
The home loan balance transfer facility helps you transfer your existing home loan account to a lender offering a lower rate. In turn, doing this can help you reduce your housing loan interest payment and save on EMI repayments. The home loan balance transfer is available across leading banks and NBFCs in India.
If you are in the initial years of home loan repayments, then availing of the home loan transfer is the best resort. It is because the home loan interest rate gets paid during the beginning of the tenor is usually high.
Hence, when you switch your loan account, you can save on interest charges hugely. Doing it at the end of the tenor is not good as it means paying more as the transfer charges to your old lender.
Many top lenders in India let you access the top-up loan facility when you go for the home loan balance transfer. This way, you can avail of a large amount at a lower rate and a longer tenor. The loan amount could be used for purposes without restrictions.
Before applying for the home loan balance transfer, you should always use the home loan balance transfer calculator. It can help you calculate your actual savings and make you confident.
