Buying a house is a dream for everyone. It not only fills you with a sense of pride but also protects you from paying monthly rent and searching for a new house every time your landlord asks you to vacate their property. However, it isn’t easy to buy a house in India. You need to arrange a large amount of funding, which can be several lakhs or even a few crores of rupees.
With the help of a home loan, you can easily get the required funding and fulfil your dream of owning a house. There are several benefits of availing of a home loan. The most notable one is it allows you to buy your dream home and pay for it in easy EMIs spread over a long tenure of up to 30 years. Additionally, it protects you from buying fraudulent property since lenders usually check all property documents before disbursing home loans.
However, with many banks and non-banking financial corporations (NBFCs) now offering home loans in India, choosing the right home loan lender for yourself becomes crucial. You need to research well and compare home loan products of different lenders before making a final decision. You need to choose the lender that suits your requirements the best.
To make an informed decision, you can consider various factors such as home loan interest rate, eligibility criteria, foreclosure charges, maximum loan amount, tenure, and the loan disbursal process of the lender.
But despite everything, what if you end up choosing the wrong lender? It might also happen that you may get the best deal when you start your home loan, but a different lender offers you a better deal for your requirements in the future. The question is, what should you do in such situations?
You might think, what if I can transfer my home loan to another lender? Yes, you’ve got it right. You can always transfer your existing home loan balance to a different lender using the home loan balance transfer facility. This article will discuss home loan balance transfer benefits, features, and eligibility. Let’s get started.
A home loan balance transfer is a facility you can transfer or switch your outstanding home loan balance to a different lender. This results in closing your home loan account with your previous lender and opening a new account with the new lender. The home loan balance transfer facility is also known as home loan refinancing.
With a new lender, the home loan balance transfer facility is useful when you’re getting additional benefits – such as better interest rates, lower pre-payment charges, better customer services, enhanced tenure, etc. This facility basically allows you to avail of a new home loan with a new lender equivalent to the balance home loan amount left for the repayment with your existing lender.
The main benefit of availing of a home loan balance transfer facility is that it helps you to reduce your home loan interest rate. Apart from that, you can also get benefits such as pre-approved offers, better repayment terms, more convenient tenure, and enhanced customer services.
Let’s look at some of the top home loan balance transfer features and benefits:
1. Pay lower interest on your remaining home loan balance
As mentioned, the primary benefit of availing of a home loan balance transfer facility is that it allows you to lower your home loan interest rate. You can transfer your outstanding home loan balance to a new lender that offers a better interest rate than your existing lender. This way, you will need to pay lower interest on your remaining home loan balance, and subsequently, your home loan EMIs would also decrease. You can also transfer your home loan balance to switch from fixed to floating rate of interest.
2. Easier repayment terms
A reduced interest rate is not the only reason why people transfer their home loan balance. You can also get better repayment terms with your new lender. The terms and conditions for the repayment of a home loan vary from lender to lender. For example, you can get a more convenient tenure on your home loan with a new lender than your existing lender. Also, your new lender could be more flexible with EMI dates and the repayment schedule.
3. Avail of pre-approved offers
Many lenders come up with pre-approved offers from time to time to attract new customers. They provide greater discounts on home loan interest rates along with several other beneficial schemes for borrowers. You need to keep an eye out for pre-approved offers from various lenders. If you’re getting any such offer that can ease your home loan repayment or enhance your borrowing experience, you can think about transferring your home loan balance amount.
4. Get a top-up on your home loan amount
In case you fall short of finances, you may need a top-up on your home loan. It may help you fulfil additional requirements for buying your housing unit. While some lenders offer home loan top-up facilities, some don’t. So, if your existing home loan lender isn’t offering this facility, you can transfer your outstanding home loan amount to a different lender with whom you can get this facility.
5. Get better customer services with your new lender
You can also apply for a loan balance transfer if your new lender offers better customer services than your existing lender. For example, not every lender provides facilities such as 24x7 customer assistance, online payment of the EMIs, complete tracking of your home loan account through a web portal or smartphone application, etc. If your existing lender isn’t offering such services, you can transfer your outstanding home loan balance to Poonawalla Fincorp. Poonawalla home loan balance transfer is easy and involves minimum documentation.
Now that you know how home loan balance transfer can benefit you, let’s talk about things you should check before transferring your home loan with a new lender:
It’s easy to get carried away when a lender is offering a better interest rate. However, you must always look at its credibility before transferring your outstanding home loan amount to a new lender.
You must carefully analyse the cost of refinancing your home loan versus the benefits of doing so. Go ahead only if the latter outweighs the former.
Before applying for a home loan balance transfer with a lender, don’t forget to check home loan balance transfer eligibility with it. Also, check the home loan balance transfer documents you need to submit.
You must be aware of the terms and conditions of the new lender before transferring your home loan balance to it. Read the fine print carefully and go ahead only if you find everything satisfactory.
There are several benefits of availing of the home loan balance transfer facility. However, it is very crucial to take your time and decide if you should refinance your home loan with a lender or not. Consider all pros and cons before making a decision.
You can transfer your outstanding home loan balance to Poonawalla Fincorp to avail of a range of benefits, such as competitive interest rate, higher loan tenure, and round the clock customer support.
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