Having a home is not just about having a place to live, but about a sense of identity and belonging. The ownership of a home brings an incredible feeling with it. In today’s world, buying a home is not just a need but a priority. However with the increase in property rates, buying a home on lump-sum payment is almost impossible. That is how Home Loans solve your problem.
One must be very careful while applying for a Home Loan as this is a long term investment and can lead to certain risks. However, at times even after a comparative study of all Home Loan offers by banks and NBFCs, you may end up paying high-interest rates.
Home Loan Balance Transfer:
At times, the thought of availing Home Loans at low-interest rates charged by other lenders can come to your mind. But is that possible? Can you make a shift from your current Home Loan? When should you opt for a Home Loan balance transfer? What is the procedure for loan balance transfer? The following points can answer all your questions:
- Advantages of Home Loan Transfer: Mentioned below are some of the benefits you can avail through a balance transfer:
- Low-interest rates: Transferring balance is done only when another lender is providing a low-interest rate.
- Pre –payment options: Balance transfer does not block loan pre-payment chances.
- Hassle free:Transferring Home Loan from one lender to another is a quick process and requires less documentation.
- Saving in EMI:The reduction in interest rate is ultimately the reduction in the EMI you need to pay.
- No extra charges: Most lenders do not charge any charges other than the processing fees and loan transfer charges.
- No need for CIBIL: In most of the cases your CIBIL score remains unchanged while applying for a Home Loan transfer.
- Multiple options: If you are thinking of aloan transfer you will get many options to choose from.
- When Transfer Home Loan?: A loan transfer can prove to be beneficial only when you apply at the correct time. Go for a Home Loan transfer option when:
- You come across lenders charging low-interest rates.
- Your existing lender is not reducing the interest rate on your Home Loan.
- You have a good track record and have made all repayments on time.
- Wish to avail benefits of top-up loans.
Are you eligible for a loan balance transfer: Here are a few factors determining your eligibility for Home Loan transfer:
- Age: 21-60
- Your credit history and savings
- Stable employment status and work experience
- Gross family income
- Clear credit record
- The Documentation work: If you are applying for a loan transfer, you might need following key documents:
- Pan card
- ID proof of the company
- Address proof
- Latest Electricity bill/credit card bill
- Newest CTC
- Salary slips of the last three months
- Latest Form No.16
- Documents regarding loan repayment records
- Foreclosure Letter
- Photocopies of all papers related to the property you will keep as a mortgage.
Well, these were certain things you should keep in mind before and throughout the loan transfer procedure. However, you can make your task much easier by using a loan transfer calculator. When you are thinking of a Home Loan transfer, you have to make sure that it leads to multiple benefits and helps you save a decent amount. At times the Home Loan transfer charges are so high that you can end up losing money instead of saving.
Also, as different banks and NBFCs offer different Home Loan interest rates, a comparison and calculation of Home Loan EMI are necessary. But don’t worry! A Home Loan transfer calculator on various NBFC websites can guide you make the best choice. Go through this online time savvy tool to understand how it works and benefit from the wonders it can do.
Make your journey towards your home more beautiful and fasten your seat belts as you set on a roller coaster ride to your dream.