Properties loan balance transfer
Home loan balance transfer – When you move an existing house loan from one bank to another, this is known as a refinance. This is also known as refinancing, and it allows a borrower to get reduced interest rates and better services. When opposed to a home loan, a home loan balance transfer requires fewer documents and is easier to get.
Why do you need to Transfer your Home loan?
- If you refinance your house loan, your interest rate may go down.
- Either your EMI will be reduced while your duration remains the same, or your EMI will remain the same while your term is reduced.
- The overall cost of the loan will be reduced as a result of this.
When refinancing a house loan, the processing and balance transfer fees must always be considered. Only if the new bank’s interest rate with these additional costs proves to be less expensive than the current loan should a customer choose to refinance the loan.
Why and When Must You Avail the Home Loan Balance Transfer?
Why?
- A home loan balance transfer is available if a person is paying a higher interest rate on a loan in a bank that provides a lower interest rate.
- If a bank refuses to lower the interest rate despite the fact that you have a good relationship with them.
- In the event that another bank offers a cheaper rate of interest.
When?
A home loan balance transfer can be availed 12 – 18 months after faithfully paying off your existing housing loan.
