Balance Transfer of Home Loan: 6 Reasons Why You Should Consider it

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balance transfer of a home loan is, why you should opt for it, and more. A home loan balance transfer allows you to change your lender. Using it, you can transfer the balance of your home loan to a new bank or NBFC offering you better terms.

Generally, you may opt for a balance transfer to enjoy lower home loan interest rates or a longer tenure. When you avail of a balance transfer, your existing lender will pre-close your home loan account and transfer the outstanding amount to the new lender. Hereafter, you will have new terms of repayment.

This may include revised interest rates, EMI amounts, due dates, and other loan terms as per the new lender’s policy. If you are considering a balance transfer, assess your financial requirements, and the benefits offered by the new lender, among other factors. Also, keep in mind that you will need to pay certain costs to opt for a balance transfer of a home loan.

As such, determine if transferring your home loan is a choice that actually results in savings and not just prolonged debt. To gauge this, you can use a home loan balance transfer calculator and compare the new EMI and interest outgo with your current one. Switching your home loan has many advantages.

Here are some of them: Lower Interest Rates The most common reason to opt for this facility is to enjoy lower interest rates. With a nominal interest rate, you will have to pay a lower EMI, which makes repayment more affordable. Moreover, it reduces your overall borrowing cost.

Given that the home loan tenure is generally long, you may come across a lender that offers a lower interest rate than your current one. In this case, a balance transfer can be a viable option. You can use the home loan balance transfer calculator for