There is no doubt that a Home Loan is a vital and smart financial tool. It is to help you buy your own home, what really matters is the regular payments of the EMIs! It’s because the load of EMIs could jeopardize your monthly budget and land you in soup.
What’s more, there is a cut-throat competition among various banks and non-banking finance companies (NBFCs). You can see various versions of Home Loan rates. Now, it is also possible to transfer your existing loan from one lender to another. You can enjoy affordable Home Loan interest rates and better customer services.
Yes, leading online lenders let borrowers transfer their Home Loan accounts from one lender to another. This make the most of lucrative rates and other benefits.
Nonetheless, while switching your Home Loan from one lender to another, there are some things that you need to consider. In the same context, let’s provide some Home Loan balance transfer checklist to help you out!
Home Loan Balance Transfer Factors to Consider!
1. Reviewing the sale service
The first thing that an existing Home Loan borrower should consider is – reviewing the sale service of your probable lender. Like this, you will come to know how you will be treated. You will know how your issues will be resolved once the balance transfer is complete. You can also know about the services of the prospective lender via your friend circle and people who have opted for the balance transfer.
2. Check on interest rates
Another vital thing worth considering is – whether the Home Loan interest rates on offer by the new lender is actually on the cards or just publicity. Yes, some lenders may lure you to subscribe to a Home Loan balance transfer. They can offer a lower rate for some months or 1 year and then offer a higher rate. They may cite some illogical reasons for increasing the Home Loan rates. Thus, unless and until you are dead sure about the interest rates and that it’s true, then only opt for it.
3. In Depth checking
The next thing on the checklist will be to do a complete in-depth checking and understanding of the terms and conditions of the existing loan provider and doing a comparison. If you find something fishy, enquire about it with your existing lender. If you don’t get a satisfactory answer, don’t go ahead!
4. Hidden Charges
Also, it becomes your duty to check about if there is or it could be other charges linked to it like processing fee, stamp duty, and other charges. Also, you should know that the purpose of a Home Loan balance transfer is to reduce the loan cost and not increase it. Thus, ensure that paying too many extra charges is not increasing the load of your housing loan.
5. Compare processing charges
A borrower should also compare the processing charges and the benefits that he/she will make on transferring the Home Loan account. If you don’t see any benefit or if the processing fee of the new lender is higher than the benefits that you will avail, scrap the balance transfer.
The Bottom Line
Although a Home Loan balance transfer is one of the smarter ways to bring down the overall cost of the Home Loan, the charges for doing it should not overrule the benefits. Hence, a borrower should not get excited about seeing a better Home Loan interest rates in the market and go ahead with the balance transfer! Rather, he/she should examine all discussed factors and then only make a move! All the best!