Rising Home Loan Rates: How Home Loan Transfer can Help You
Want to pay a lower rate on your existing home loan? You can opt for the home loan balance transfer facility online now.
Mr. Sanket Singh, a resident of New Delhi, and a Marketing Manager profession was not keeping happy these days. The reason for his displeasure was the home loan that he has availed from a leading online lender. He has secured the home loan 2 years before and had to sell some assets to make way for the down payment as well.
He was paying the home loan EMIs on time and things were going smooth. It all started when he saw an ad on TV of a lender offering a lower home loan interest rate.
This made him regret that he should have waited for the loan so that he would have got a bigger deal. The difference between both home loans rates was enough to let him know that he will lose thousands of his hard-earned money during its course.
If you are also an existing home loan customer who is facing the brunt of the lower home loan interest rate, you need not worry as you can still pay lower EMIs. How?
It is possible when you opt for the home loan transfer facility.
What is the home loan balance transfer?
A home loan balance transfer is a unique facility awarded by today’s modern-day lenders to existing home loan customers. The home loan transfer facility has the provision to help an existing housing loan customer switch or transfer his/her home loan to a lender offering a lower rate. Like this, the home loan transfer facility helps them opt for lower housing loan rats and pay smaller EMIs.
However, for availing this amazing money-saving facility, one needs to pay some fees and processing charges to one’s existing lender. The fees and charges of the housing loan may be 1% of the total home loan outstanding.
Thus, before anyone can get ahead with the home loan transfer, one should check if he will save or not. He/she should subtract the fees that will be given to the existing lender from the savings that will be made. If the fees are more than the saved amount after completing the home loan transfer, it is best to stick to your old lender.
Another thing that people looking to opt for the home loan balance transfer should consider is availing the facility when your home loan is still young. Opting for the home loan balance transfer say after 10 years availing the home loan won’t help you. It’s because, by that time, you would have already paid a major portion of your home loan.
What is a top loan that’s given with a home loan transfer facility?
When you opt for a home loan balance transfer facility with a new lender, they will cherish your membership and will offer you a top up loan. A top up loan can help you grab as higher as up to Rs.50 lakh to cover your other needs and goals. The rates charged on the top up loan is lower than a personal loan and only 1-2% more than your home loan. You also get to enjoy a wider tenor to repay smaller EMIs and enjoy fulfilling your many goals without bothering about the high loan interest rate.
The Bottom Line
The home loan balance transfer is an amazing facility created by today’s online lenders to help existing home loan customers enjoy lower home loan interest rates.
Now that you know the basic information about it, even you can apply for it after assessing your needs, the charged involved and more.
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