Home loan transfer is a service provided by financial institutions to their potential loan applicants. With this service, an applicant can effortlessly transfer their pending home loan from one financial institution to another. The loanee’s typically transfer their house loans when they believe their loan provider’s interest rate is excessively high and they may obtain a home loan at a lower interest rate from another loan provider, but they lack the financial means to repay this loan and seek another loan. Under this arrangement, the new loan provider pays the loaner’s unpaid loan to the previous loan provider, and then pays EMIs to the new loan company instead of the old one.
Points to consider before opting for home loan balance transfer
There are various points which need to be considered before opting for a home loan balance transfer, some of which are as follows:
- Negotiating with the existing loan provider
- Look out for associated charges
- Healthy credit score
- Read the terms and conditions carefully
- Duration of the remaining repayment tenor
Benefits of home loan balance transfer
There are many benefits of using the opportunity of a home loan balance transfer, some of which are as follows:
- The facility of using a Top up loan and the balance transfer calculator
- Lower interest rates when compared to the previous loan provider
- Availing the facility of an extending the tenor of home loan
- Good repayment record will help is getting a lot of other benefits
There are various housing finance companies that provide the opportunity of availing the benefit of a home loan balance transfer. These companies provide the benefit of top up loan with a large repayment tenor of 20 years at a very low interest rate and a home loan balance transfer calculator. Therefore, the loan recipient whose loan provider charges a large interest rate can avail this opportunity of choosing a refinanced loan from a housing finance company and can earn a lot of benefits.