Everyone knows that comparing home loan plans before choosing one is a very important step in getting a good deal. However, what if you have already taken a home loan and now find better deals offered by other lenders? In such cases, you can always opt for a home loan balance transfer. For those who are not familiar with this, it involves transferring your existing outstanding home loan debt from one lender to another for revised terms.
Some home loan borrowers face challenges in clearing their loans. Whatever the reason, one solution is to transfer the loan to a lender that offers better terms that can make repaying the loan easier. Read on to understand how transferring your home loan can ease its repayment:
- The new lender can offer you a better-suited repayment tenure
It is never good to miss out on your EMI payments. Your credit score can take a hit, which can cause problems if you require a loan in the future. Therefore, if you are facing difficulty in paying off your current EMIs, going for a home loan balance transfer can be beneficial. This is because the new lender can offer a longer repayment tenure that can reduce the loan’s monthly instalments, thus making the loan EMIs more affordable.
- The revised loan plan can have a lower interest rate
One of the biggest reasons why borrowers prefer to transfer their loans is because of the revised housing loan interest rate. Although it might not seem like much, even a slight difference in the interest rate of the loan can end up having a significant impact on the overall cost of the loan. Therefore, choosing a lender who is offering a good home loan balance transfer interest rate can help in easing the loan’s repayment.
- The new lender might even offer better services
If your current lender is not offering favourable pre-payment terms, or you are not satisfied with their customer support service, transferring the home loan can be an effective solution. You can transfer your home loan to a lender that is known for its services, so you would not face any problems in the future.
- You can also get a top-up loan
Some borrowers might not just have repayment problems but also require more funds. In such situations, a home loan balance transfer can still help as new lenders can also offer a home loan top-up. This way, borrowers can secure the financial assistance they need.
In addition, before going ahead and transferring your home loan, it is advisable to first make use of a home loan EMI calculator. This calculator will display the revised EMIs, based on which you can decide whether to go for the home loan balance transfer or not. You should also check with the new lender about the documents required for home loan balance transfer. This way, it will be much easier to transfer the loan without any complications.