Check Out the Advantages of Applying for Home Loan Balance Transfer

Purchasing a home is one of the most rewarding accomplishments because it provides you with a sense of pride in being a homeowner. Although it is not easy because the cost of purchasing a house can be exorbitant and can exceed lakhs and crores, you should not be concerned because there are numerous lenders available in the market that provide you with home loans at competitive interest rates, paired with an affordable EMI that you can repay over a period of 30 years.

A home loan balance transfer is a useful facility that allows you to transfer your outstanding home loan balance to a lender that offers you competitive lending terms, such as lower interest rates and a longer tenor period. A home loan balance transfer allows you to close your existing loan account and open a new loan account with a new lender, which is also referred to as home loan refinancing.

Here are the advantages of applying for a home loan balance transfer:

Top-Up Loan

When you apply for a home loan balance transfer, you are automatically eligible for a top-up loan, which allows you to cover any minor expenses. Another advantage of a top-up loan is that there are no end-use restrictions, so you can use the money however you see fit.

Affordable Interest Rate

The primary advantage of a home loan balance transfer is that it allows you to obtain a home loan with low interest rates. A lender with a low interest rate will allow you to save a significant amount of money on interest payments, which will reduce your EMI payments. You can change your interest rate from a fixed to a floating rate.

Repayment Terms

When you switch your home loan to a new lender, you not only save money on interest, but you also get better repayment terms. The terms and conditions of a home loan vary depending on the lender. Depending on the eligibility criteria you meet, you may be eligible for advantageous lending terms such as affordable EMIs, flexible EMIs, and a repayment schedule. 

Customer Service

Depending on the lender you choose, you may be able to receive better customer service than with your current lender. For example, you can get customer service 24 hours a day, online assistance, online EMI payments, repayment schedule tracking, an online portal, and a mobile application.