Thinking of switching your home to a new lender? Do you see a low rate of Interest? We usually research and start comparing for the best deals when we decide to take a home loan. Finally, we come to a decision of choosing a lender that suits our decision the best that we want. There are chances that you have got the best deal when you start a home loan transfer process, but, another lender might be giving at even lower prices or maybe a better deal for your requirement! Thought about that?

When a situation like this arises, it is advisable to choose to do the home loan transfer with a new lender of home loans for a better view. Such a process is coined as home loan balance transfer.

Let’s have a look at the benefits of a home loan balance transfer.

1- Home Loan Balance Transfer- Explained

Another term used for home loan balance transfer is refinancing. Every lender of a home loan offers the facility of a home loan balance transfer. Check your eligibility and if you are eligible, you will be able to switch the home loan to get a better deal as a home loan borrower.

Lenders always try to retain their consumers by offering them the best rates. A new way to crack it is to ask your lender to have a look at your interest rate and get you a better deal based on the track record of your repayment or credit score. Then there will be fair chances that the deal will be renegotiated.

2- Why should you opt for Home Loan Balance Transfer?

The major reason to opt-in for a home loan balance transfer is lower interest not excluding repayment terms and other factors.

3- When should the home loan balance transfer make the utmost sense?

When the pending home loan tenure is considerable

When your home loan is in the commencing years, a transfer makes sense. However, at the end of the tenure, a transfer doesn’t count viable.

When the pending amount of home loan is ample

If your major chunk of the home loanremains unpaid, it will result in default in your credit score, and/or if you get a lower ROI from your lender, it makes sense to transfer the home loan.

Reduced cost- OVERALL

Most of the borrowers only look at the lower ROI before transferring the loan. You must know that there will be home loan transfer charges if you choose a new lender to transfer your loan to. In such a case, you should consider the overall cost of the transfer and take a look at the benefits.

Here’s the process of home loan transfer

1- Start by comparing the rate of interest

2- Negotiation with the pre-existing lender

3- NOC from the pre-existing lender

4- Collection of important documents

5- Submission of the documents to a new lender

6- Close the existing loan

7- New home loan begins with better ROI

Additionally, you can also transfer a home loan to another bank. But a home loan balance transfer is a win-win situation for a lender and a borrower. So make sure you follow the process correctly!

Home Loan Balance Transfer – Godrej Properties

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