Thinking of switching your home to a new lender? Do you see a low rate of Interest? We usually research and start comparing for the best deals when we decide to take a home loan. Finally, we come to a decision of choosing a lender that suits our decision the best that we want. There are chances that you have got the best deal when you start a home loan transfer process, but, another lender might be giving at even lower prices or maybe a better deal for your requirement! Thought about that?
When a situation like this arises, it is advisable to choose to do the home loan transfer with a new lender of home loans for a better view. Such a process is coined as home loan balance transfer.
Let’s have a look at the benefits of a home loan balance transfer.
1- Home Loan Balance Transfer– Explained
Another term used for home loan balance transfer is refinancing. Every lender of a home loan offers the facility of a home loan balance transfer. Check your eligibility and if you are eligible, you will be able to switch the home loan to get a better deal as a home loan borrower.
Lenders always try to retain their consumers by offering them the best rates. A new way to crack it is to ask your lender to have a look at your interest rate and get you a better deal based on the track record of your repayment or credit score. Then there will be fair chances that the deal will be renegotiated.
2- Why should you opt for Home Loan Balance Transfer?
The major reason to opt-in for a home loan balance transfer is lower interest not excluding repayment terms and other factors.
3- When should the home loan balance transfer make the utmost sense?
- When the pending home loan tenure is considerable
When your home loan is in the commencing years, a transfer makes sense. However, at the end of the tenure, a transfer doesn’t count viable.
- When the pending amount of home loan is ample
If your major chunk of the home loanremains unpaid, it will result in default in your credit score, and/or if you get a lower ROI from your lender, it makes sense to transfer the home loan.
- Reduced cost- OVERALL
Most of the borrowers only look at the lower ROI before transferring the loan. You must know that there will be home loan transfer charges if you choose a new lender to transfer your loan to. In such a case, you should consider the overall cost of the transfer and take a look at the benefits.
Here’s the process of home loan transfer
1- Start by comparing the rate of interest
2- Negotiation with the pre-existing lender
3- NOC from the pre-existing lender
4- Collection of important documents
5- Submission of the documents to a new lender
6- Close the existing loan
7- New home loan begins with better ROI
Additionally, you can also transfer a home loan to another bank. But a home loan balance transfer is a win-win situation for a lender and a borrower. So make sure you follow the process correctly!