Rate of Interest Graph
Rate of Interest
A home loan balance transfer is a process that allows you to transfer the outstanding balance on your home loan from current lender to new lender, especially one which offers lower interest rates. Almost all leading banks and NBFCs offer a home loan balance transfer. The transfer of a balance is a smart choice if you are not satisfied with your current lender. With a home loan balance transfer, you can enjoy some benefits, including lower interest rate, top-up loan facility and extended loan tenure.
Benefits of switching to the new home loan lender include:
Transferring a home loan from one lender to another is simple and hassle-free process. All you need to do is collect some import information, like outstanding principal amount, the loan amount you have paid till date, current rate of interest, and on whose name the demand draft should be made, from the current lender. Then approach the new lender to apply for a balance transfer.
Each lender has its own home loan balance transfer rules and charges. You should enquire about the cost involved before transferring the outstanding balance on your home loan to a new lender. New lender may charge you some percentage of the principal outstanding as a processing fee. If the outstanding balance being transferred is high, the processing fee may cost you more than you save on interest reduction. Hence, it is judicious to check the home loan balance transfer fee and request the lender to reduce and waive off it.
Use the home loan balance transfer calculator to figure out the reduction in EMIs and the cost of the loan, resulting from a home loan balance transfer. Using home loan balance transfer calculator is pretty simple; complete the following steps to find out profits from the balance transfer.
Documents required for a home loan balance transfer may vary from one lender to another lender. Here is a common checklist of the documents required for a home loan balance transfer.