Home Loan Balance Transfer- 5 Things You Shouldn’t Overlook
Do you feel that you are paying high interest and charges for your home loan? Do you feel that your monthly EMI on your home loan is turning out to be a burden for you? It is very important that you go through the status of your current loans frequently. Whenever you feel that the monthly interest or EMI of your home loan is too high, then you can consider the option of transferring your existing home loan to a different financial lender.
However, before taking up the decision to change your house loan to a different financial lender, the following are the few things that you have to take into consideration.
- Check your Eligibility for Home Loan Bank Transfer
You must be aware of the terms and conditions of your current home loan before you look for lenders who can offer you a home loan at lower interest rates and associated benefits.
It is quite possible that few financial lenders will not allow for loan transfer from one lender to another. In such a scenario, try to renegotiate the terms and conditions of your home loan with your current financial lender.
- Ask your Existing Financial Lender to Lower the Home Loan Interest Rate
Even before jumping to any conclusions, it is better to check the offers that your current financial lender can provide you. Few lenders can agree to lower your home loan interest rates or monthly loan EMIs as they would not prefer to lose their customers. This option can save you a good amount of effort, time and money.
The decision to lower the interest rate or EMI is based on your credit history as well as the loan repayment history of the applicant. Thus, it is essential to maintain a good credit history. You will also not have to go through the tedious formalities and procedures of applying for a loan transfer.
3. Check the Overall Cost of Transferring the Loan Amount to another Lender
Just getting a lower interest rate isn’t good enough to go for a home loan balance transfer. Such balance transfers usually come with several additional costs such as pre-payment fees, processing fees and application fees.
A few financial lenders also charge a transfer fee. It can be charged by both the existing financial lender as well as the new lender where the home loan will be transferred to. One must always calculate all these costs to be sure that the costs involved in the home loan balance transfer are less than the interest amount that they wish to save.
- Terms and Conditions of Home Loan Balance Transfer
It is important to know that once you shift your home loan to a new financial lender, you will be bound to their new policies, terms and conditions. It is better if you go through the terms and conditions of the new lender thoroughly so that you are fully confident about the long-term benefits that you can gain by transferring the loan amount.
Some financial lenders may ask you to shift your salary account to their bank. This, in turn, will require you to go through additional paperwork and formalities. It is better to avoid such lenders as it will also require consent from your employer.
5. Go Through the Reviews about your New Financial Lender
You will come across a good number of financial and banking institutions that can offer you to lend money at attractive rates. However, this makes it all the more important that you go through their reviews first with respect to market perception and customer service before transferring your housing loan. It is very important to make sure that the existing customers are happy with the services offered by your new financial lender. Go through different testimonials and reviews to be completely sure about your new lender.