Over the years, home loans have emerged as one of the best sources to arrange funds and get into a new home or build one.
Home loans come with a significant amount and carry a longer tenor.
Thus, the home loan interest rate is of utmost importance for borrowers. It is because even a slight fluctuation may affect your outlays.
If you have availed of a home loan and repaying it and find it does not carry the best housing loan interest, you don’t have to suffer.
You can always opt for the home loan transfer and enjoy the benefit of a lower rate. This way, you can also make considerable savings while repaying it.
Carrying out the home loan transfer also means that you can enjoy a top-up loan, EMI holiday and beyond.
On that note, let’s check out a few amazing benefits of housing loan transfer!
Home loan transfer benefits at a glance
- Make the most of the lower interest rates
The biggest reason why people apply for a home loan transfer is for a lower rate of interest. Doing this reduces the home loan EMIs and the total cost of the loan. Even if it is 0.5%, it can go a long way in helping you save thousands and even lakhs. Other than interest savings, you can also avail tax benefits on the interest paid component. To do that, using the home loan tax benefit calculator online on your lender’s site is recommended.
- Higher top up loan to manage other outlays
When you go for the home loan transfer, you can access additional funds in the form of a top up loan. Many lenders may let you enjoy a top up loan of up to Rs.50 lakh. It is possible to use the loan amount as per your needs and without restrictions. From home renovations to debt consolidation to travel and more, the funds could be used for all.
- Zero prepayment and foreclosure charges
When you opt for a home loan transfer with a known lender, you may enjoy amazing part prepayment and foreclosure conditions. As a part of this, you may not have to pay any fee for prepayment and foreclosure. Most lenders may let you go for making a prepayment after paying the first home loan EMI. Yes, if its value is higher than or equal to that of the 3 EMIs, prepayments may be possible. If not, it may be available after the payment of 3 EMIs.
- Personalized insurance solutions
Life is unpredictable, and one must be prepared for all urgencies. One of the easier ways to do it is ensuring the use of customized insurance solutions from top lenders. Yes, you should do that while opting for the home loan transfer. The selection of an option on the basis that it can protect your family during an emergency should be made.
- Free online account access
Transferring your home loan balance to a new lender may help you manage it at your convenience. You should be able to apply for the facility online and manage it from the comforts of your home. Everything should be manageable online via an online account on the website of your new lender. This way, knowing about the outstanding amount, remaining and paid EMIs, next EMI due date, and more should be possible. It can also help you stay safe during COVID-19 and still know your loan progress 24×7. In short, you don’t have to visit your lender’s office as everything is available online. Most lenders don’t charge their borrowers for accessing loan details online. Hence, you can dial or get in touch with your new lender online and get confirmation about it.
A loan balance transfer can quickly help you save on home loan interest charges. With so much going in its favour, a home loan balance transfer is indeed a workable option. It can help you reduce your interest charges and make considerable savings.
The best thing would be to shop around for the best possible loan rate on a third-party website as per your needs and budget.
Comparing all loan rates online can help you do it manually by visiting many lenders’ offices and saving your time and efforts.
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