Top Reasons to Apply for Home Loan Balance Transfer

1. Top Reasons to Apply for Home Loan Balance Transfer

2. The home loan balance transfer is known as the process that gives you the benefit to avail the lower interest rate that is being offered by another lender in the market. If you have availed the home loan from XYZ lender, and you have still outstanding amount from him, you can go ahead for a home loan balance transfer, if you find the ABC lender is offering comparatively lower interest rate than XYZ lender.

3. The finance Buddha has come up with certain reasons which will tell you that why should you go ahead with home loan balance transfer and how the same can be proven effective to you. • Affordable interest rates:- • If the borrower comes across a lender, that is offering you the home loan at comparative lower, affordable and cheaper rate of interest, then the customer should certainly consider the same and go ahead with home loan balance transfer process. Especially, if the customer is in the early stage of the home loan, then such balance transfer can be proven very effective & beneficial in terms of cost saving.

4. Outstanding amount of loan versus cost saving:- • If the borrower has higher amount of outstanding home loan, then the customer can go ahead with cost versus benefit analysis in terms of home loan offered by other lenders. If the customer finds a better deal than the current one, then he or she should go ahead with the balance transfer. However, if the outstanding amount of the home loan is lower, than it is not advisable for the customer to go ahead with the home loan balance transfer process.

5. Outstanding tenure of the loan versus cost saving:- • This is another reason that has to be considered before applying for the home loan balance transfer. Home loan is offered for the larger period of time. When the repayment tenure of the loan that is pending is for a longer tenure, and if the borrower is getting the beneficial deal, then it is certainly advisable for the customer to proceed further with another lender. However, if the outstanding tenure of the loan is not so long, then the customer should stick to the old lender only. The reason is that the process of the same is involve a lot of time. • Also, the customer has to pay processing fees and charges as well. Hence, at time, it happens that the customer ends up in paying the same or more amount during this entire activity of home loan balance transfer. In such time, if the tenure of the loan is considerably more, than it is a beneficial deal for the customer. Hence, it is needed that the customer can carefully evaluate the situation and accordingly proceed with the home loan balance transfer.

6. Comparative analysis of Prepayment penalties and other charges in terms of benefits:- • While proceeding with home loan balance transfer, the borrower must see and compare the prepayment penalties and other charges such as administrative charges or hidden charges etc. should keep in mind. If the new lender is offering relatively relaxed terms and conditions in such cases, then it is beneficial for the customer to consider the same.

7. Other important aspects or benefits:- • Before opting for the home loan balance transfer, it is essential for the customer to carefully conduct the analysis of each and every terms & conditions offered by the new lender. Also, the customer can bargain if he or she holds a good credit rating and good CIBIL score. If the lender can reduce the interest rate while considering such score in mind, then it can be proven as a cost saving deal for the borrower. The borrower must ensure in terms of not taking the hasty decisions. At the same time, the borrower should check the actual reason of offering low interest. This will help in reducing the possibility of a customer to fall in trap of short term promotional offer.