You can change lenders thanks to a tool called a home loan balance transfer. Why would you change lenders and how would a house loan balance transfer help you are the key questions. Reducing your overall interest outflow is, of course, the most obvious solution. You have the option to lower your housing loan interest rates and, consequently, your EMI, by transferring your amount. Additionally, it enables you to obtain a sizable top-up loan at a reasonably low-interest rate.
To learn more about the advantages of a house loan balance transfer, continue reading.
What Is a Balance Transfer on a Home Loan?
As the name suggests, a house loan balance transfer is the procedure of moving the remaining balance on your existing home loan to a new lender. Why might you change? It can be for a better mortgage rate, more favourable loan terms, or even a top-up loan for additional financial requirements. Whatever the cause, home loan balance transfers have become a workable option for borrowers with mortgages who want to lower their EMIs, improve affordability, or shorten the length of their loan to pay it off sooner.
You will be obligated to the offered house loan EMI and lender for a considerable amount of time because a home loan is a long-term commitment that can last up to 30 years. You must be satisfied with the terms and circumstances that apply, whether they relate to other fees or the degree of transparency of the underlying procedures and associated fees wotpost. Naturally, your EMI will have a significant impact on how easily you can service the loan.
A manageable EMI guarantees easy month-to-month repayment without straining your resources. However, often, we think we can pay a certain amount as an EMI with ease, but when the loan starts, the amount burdens your finances. Unexpected costs just make the problem worse.
All things considered, it is in your best interest to stick with a lender who provides you with the lowest interest rate and the most advantageous loan conditions. The house loan interest rate is the most important factor to investigate before choosing a new lender, however, there are other considerations as well. For paid applicants, the interest rate currently available might go as low as 6.75%*.
The Transfer of Home Loan Balances
The procedure is simple once you’ve decided to use a lender’s home loan balance transfer option. Once you’ve spoken with your new lender and decided on the terms and conditions of your loan transfer, the procedure is started.
Your new lender certifies that they now have custody of your mortgage loan and makes the last loan payment on your behalf to your old lender to complete the balance transfer process.
Your existing lender transfers the title to your property to your new lender once they have paid off the remaining loan balance. These papers include a No Objection Certificate (NOC), which declares that from this point forward, you owe nothing to the existing lender. Depending on the lender’s convenience options, these can either be delivered to your door or picked up at the branch closest to you.
Features of a Mortgage Money Transfer
Your house loan’s balance transfer (BT) is comparable to the process of getting a new home loan. In other words, you qualify for practically all the benefits offered by a new house loan. These frequently consist of:
- A sizable top-up loan with no limits on end usage
- No fees for partial prepayment or foreclosure
- a flexible 20–30-year payback period
- Customised alternatives for repayment
- Very little documentation
Before requesting a home loan balance transfer, there are a few things to keep in mind. One of the most important is that it’s advisable to keep a spotless credit repayment record to be taken into consideration for a home loan balance transfer. It increases your likelihood of obtaining the balance transfer.
After the transfer, you will be responsible for paying the remaining EMIs to your new lender until the loan’s tenor is over. Another way to look at it is that you’ve essentially foreclosed on an existing mortgage and replaced it with a new one that has better terms—better interest rates, a shorter term, and better payback guidelines. Your chances of using the balance transfer option and negotiating for a lower interest rate are increased as a result.
The advantages of transferring your home loan balance to HDFC
While transferring your home loan, there are many lenders to take into account. Of these, HDFC Bank is a renowned name among all. Additionally, since it is a 100% subsidiary of HDFC, you benefit from the extra dependability of working with a reputable lender.
When you transfer your house loan to HDFC, you are eligible for several advantages, some of which are stated below.
- A competitive interest rate.
- A top-up interest loan
- A flexible re-payment tenor of up to 30 yrs.
- Doorstep service.
In addition to them, you gain from:
Individualised repayment plans that meet your circumstances.
Swift approval, processing, and disbursement with more than 5,000 approved projects Loans related to external benchmarks, such as the repo rate.
Final
You must conduct an extensive study before choosing a lender for a home loan balance transfer. Pick the one that will provide you with the greatest savings, either through a lower interest rate or through the best terms and conditions.
