Did you avail a home loan facility to buy your dream home sometime before at a reasonable rate of interest? Did you also recently find that home loan interest rates have become affordable? What will you do then? Will you continue repaying the home loan EMIs at the same interest rate?
One of the things that you can do is requesting your existing lender to readjust the rate of interest to the new rate. However, if the lender is unable to do that, then you can opt for the home loan balance transfer.
If you wish to know about some vital aspects regarding the home loan balance transfer, then this short post can help you out. Read on!
What is a home loan balance transfer?
As the name suggests, under this facility, you can transfer your existing loan account from a lender to another offering a lower rate of interest. As a result, the home loan balance transfer can help you reduce your EMIs. What’s more, you can also enjoy features like top up loans, prepayment and foreclosure without charges.
Where to opt for a home loan balance transfer?
Leading online and other lenders in India provide the facility of a home loan balance transfer. They also come up with various other benefits along such as:
- Prepayment facility – you can prepay an amount during the loan tenure to reduce the principal amount and pay lower EMIs
- No hidden charges – you don’t need to pay hidden fees
- Zero foreclosure charges – you are free to foreclose the loan earlier than the scheduled time without paying any charges
- Online account management – you can track the progress of the loan account right from anywhere via the lender’s digital customer portals
What is a top up loan under the home loan balance transfer?
When you transfer your housing loan account from one lender to another, the new creditor offers a top up loan option. It is an amount above and over your home loan, which can be used to cover other needs. The interest rate on a top up loan is only 1-2% more than your home loan. As a result, you can pay reduced EMIs. Also, the tenure of a top up loan is almost equal to that of a home loan. It enables you to spread the top up loan cost over a longer tenure and pay affordable EMIs to manage other expenses.
Reputed lenders in India can offer you an amount of up to Rs.1.5 crore as the top up loan. You can use the amount without restrictions for purposes that suits you the best.
How to apply for a home loan balance transfer online?
A funding agency may have some standard steps that you need to follow to apply for a home loan balance transfer online. Have a look.
Step 1 – Fill in your personal details like name, address, date of birth, and contact details
Step 2 – Provide your income details
Step 3 – Input your employment details
Step 4 – Fill in your current property details for which you need balance transfer loan
Step 5 – Use the advanced home loan eligibility calculator to view the best offers
Step 6 – Submit the details of your property
Step 7 – Pay the secure fee online – it is needed to reserve the offers generated for you. The Relationship Manager of a lender will then contact you to process the home loan transfer process further
Step 8 – Upload your documents such as IDs, address, signature proof, employment and income details and photographs on a lender’s website
If you think you can save on EMI payments by switching the loan account to a new lender, then you can go for home loan balance transfer online.