If you are an existing home loan borrower and paying a large interest charge when rates are down, you don’t have to continue suffering.
It is because it is possible to reduce your interest costs and pay lower EMIs.
Yes, all that you have to do is – go for a home loan balance transfer. Read on and know the basics about it!
What is a home loan balance transfer?
As the name suggests, a home loan balance transfer facility helps you switch your home loan account from an existing lender to the one offering a lower rate.
Once you switch your housing loan to a lender offering a reduced rate, you can save on it. In turn, it may let you pay the lower home loan EMIs.
If your current lender does not readjust your ongoing interest rate despite rates going down, you have the option of the home loan balance transfer.
However, when you go for a home loan balance transfer, you need to pay some processing charges to your new as well as new lender.
Hence, you must use the home loan balance transfer calculator and know if it is a profitable move.
Additional Read: Points to Consider Before Opting for Home Loan Balance Transfer
If the processing charges are more than what you will save, it is better to continue with the same lender.
You also get to avail of a higher value top up loan when you go for a home loan balance transfer. Using the same, you can cover your other needs without restrictions at a lower rate and a longer tenor.
Hence, if you want to save on interest charges and pay lower EMIs, opting for the home loan balance transfer is among the best option.
Read Also: How Does Home Loan Balance Transfer Work To Deal With Rising Home Loan Rates?
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