Benefits of Tranfering Home Loan | MyLoanCare | Housing Loan

Home loans are quite in demand because they allow you to become the owner of your dream home. Borrowers of the home loan have a facility of transferring their home loan from one bank to another. This is called home loan balance transfer. Choosing balance transfer is beneficial for borrowers in a number of ways. Borrowers of home loan can opt for balance transfer if they find interest rates of other lenders low.

It helps in saving on interest payment and reducing EMI or tenure. Since home loans are offered both at fixed and floating interest rates, the borrower can switch between fixed and floating interest rates with the help of balance transfer. If you have a home loan with a fixed interest rate and find that the floating rates are cheaper, you can make a switch through balance transfer facility and vice-versa. Borrower becomes eligible for a top-up loan if he transfers his balance loan to another bank.

The top-up loan might also be available on your existing loan. However, in the case of a balance transfer, you can get a top-up loan at lower home loan interest rates. While opting for balance transfer you should keep few points in mind: Processing fee charged by the new lender, foreclosure charges on the existing loan, and rate of interest charged by the new lender. You should thoroughly compare different costs involved in balance transfer along with the savings in interest rates before choosing the balance transfer. Only if the savings outweigh the costs considerably, opt for the transfer. Keeping these points in mind will help you in easy balance transfer.

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