Everything You Need to Know About Home Loan Balance Transfer

You must compare all your possibilities before applying for a mortgage in order to get the best deal. It is in your best interest to approach several different lenders because each one operates under its own terms and conditions and offers a different interest rate.

A home loan balance transfer is a beneficial option if you are looking to save money on your monthly instalments and interest payout. The process of opting for a home loan balance transfer can be lucrative if you have found a lender who is offering you better lending terms than your existing borrower, but keep in mind that your current lender should have provisions for it and you may incur minimal foreclosure and processing charges. 

Here are something factors you must consider before opting for a home loan balance transfer:

1.You should consider transferring your home loan balance if you have opted for a floating interest rate and when the repo rate is reduced by the RBI your interest rate will be reduced as well. You can take the repo rate benefits into account after you have compared the interest rate benefits between your new and existing lender.

2.You can consider opting for a home loan balance transfer during the early stages of your home loan because during that time you are still paying your interest portion.

3.Before you finalize your home loan balance transfer you should also consider the additional charges that you may incur. It is best to compare the lending terms to make an informed decision.