Over the years, the home loan has emerged as one of the most popular financial products as it enables individuals to fund their dream residential purchase with ease. Further, its associated benefits and facilities like housing loan balance transfer and top-up loan make it a viable option for many.
Being two different aspect of a home loan that serves two different purposes, it is not easy to state which of the two is better than another. However, depending on the current needs, borrowers may be able to decide which one is better between a balance transfer facility and a top-up loan.
To elaborate, by availing a housing loan balance transfer, borrowers can lower their loan interest burden significantly in case they transfer the remainder funds to a lender for more affordable interest rates. Additionally, borrowers are at the liberty to negotiate a reasonable rate of interest with the new lender. On the other hand, with the help of this facility, borrowers can further switch to a financial institution that extends better customer service and benefits.
Conversely, borrowers can avail a top-up loan on their existing home loan and meet any financial obligation considering that these credits do not come with any end-use restriction. Additionally, it comes with minimal documentation since all vital documents backing applicants’ eligibility are already with the lender. Also, the absence of any further verification process makes top-up loan’s approval quite fast and simple.
Lastly, it is safe to say that individuals would intend to lower their existing home loan interest would find the housing loan balance transfer a more feasible one. Alternatively, those who intend to meet the ancillary costs of purchasing a house may find the top-up loan facility a viable option.
Additional Read: Read These Points Before Availing Housing Loan Transfer Facility
