Updated Benefits of Home Loan Balance Transfer in 2020

Home loan transfer or home loan balance transfer is a process that allows borrowers to shift their existing home loan debt from one lender to another, primarily for more affordable interest rates and added benefits. Almost every financial institution offers this facility to its customers.


Here are the benefits of this facility at a glance –

• Affordable interest rates –

More affordable interest rate is the primary reason why borrowers opt for this facility. Even a small reduction in home loan interest results in significant savings in the long run. It reduces the EMIs and decreases the overall cost of a loan. Borrowers must compare the interest rate of several lenders before opting for this.

• Top up loans –

Top-up loans are another reason for a home balance transfer as select lenders offer such loans to borrowers when they avail a balance transfer. This extra amount is disbursed without any hassle and allows homeowners to pay for any other expenses. Borrowers can avail this credit over their existing line of credit.

• Customer service –

It’s not always interest rate or extra credit that prompts a user to switch lenders. Sometimes services or other benefits can be a reason too. Often users are unhappy with their existing lenders due to poor customer service and look for another lender to transfer their current loan balance.

A loan balance transfer is an excellent facility for borrowers; it allows them flexibility in terms of loan repayment. However, before opting for this service, individuals should check if they have to pay any extra charges for it or not.

Also Read:Handy Guide to Easily Switch Your Home Loan