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Home loans have longer repayment tenure and provide a high principal amount. Hence, the interest rate on the loan amount is also a matter of significant consequence for home loan borrowers. Even the slightest fluctuation can have a considerable impact on your outflow. If you find that your current housing loan is not offering you the best interest rate compared to others in the market, you no longer need to stick to with your existing loan. You can opt for a smart alternative – a balance transfer to a different lender who is offering better home loan terms.
Opting for a home loan balance transfer comes with its unique set of advantages for home loan borrowers:
Benefits of the Top-Up Loan Facility
By transferring your existing home loan you can also gain access to extra credits in the form of high-value Top-Up Loans. The borrower can utilize this additional loan facility as per his/her discretion as these advances come with no end-usage restriction.
You can fulfil your urgent financial needs with a top-up loan such as –
? Furnishing or repairing your home
? Paying for your child’s education
? Bearing wedding expenses
? Funding a medical emergency and other short-term obligations
This loan facility is available at a lower rate of interest without any further documentation. Furthermore, you can also enjoy the same extended tenure as your housing loan – making repayment convenient.
Avail a Better Interest Rate
Maintaining a healthy credit score reflects your creditworthiness to your new lender. Hence, when you are opting for a home loan takeover, the new lender will not only approve your loan quickly but also offer you better terms and benefits than your previous lender. Furthermore, your lender could also give you the lowest home loan interest rate and waive off specific charges on loan – making it more affordable.
This ensures that you will save more money on interest for the remaining loan tenure. However, you must always use a home loan transfer calculator to determine whether you are saving more by going ahead with the balance transfer or not.
Enjoy EMI Holiday from Specific Lenders
Your monthly instalments can take up a considerable amount of the budget. This unique home loan transfer benefit acts as a financial cushion – allowing you to plan your expenditure and manage your EMIs easily over the remaining tenure.
Check the eligibility calculator of your preferred lender before you opt for a home loan balance transfer.
Enjoy Greater Flexibility
Leading lenders offer excellent prepayment and foreclosure terms on your home loan balance transfer. You are not required to pay any charges if you decide to part or prepay the loan and foreclose it. You can even make a prepayment after paying your first EMI – as long as its value is higher than or equal to that of three instalments. This is why you should opt for a home loan balance transfer from reputed lenders.
Always look for the best home loan transfer options available and settle on one that offers you the most suitable deal. However, before seeking a balance transfer, make sure you go through the charges and how much you will save as interest. You may consider a higher total cost if you are liable for easier EMIs than before, which guarantee repayment.
