Thinking of transferring your home loan, here’s what you need to know

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Thinking of Transferring your Home Loan, heres
what you need to know
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(No Transcript)
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• Home Loan balance transfer Everything You Should
  Know
• Home loan balance transfer is the process of
  transferring an existing loan to another bank or
  NBFC, because the borrower is getting better
  rates or services there.
• After demonetization a lot of banks have reduced
  their home loan interest rates.
• Leading this set of banks is SBI who has reduced
  their housing loan interest rates by 50 basis
  points making their current rate is 8.5 per cent.

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• Following SBI other banks and NBFCs too have
  reduced their rates, one whom has reduced its
  housing loan interest rates by 45 basis points.
• These rate cuts will mainly benefit new
  borrowers. But this doesnt mean that existing
  borrowers cannot benefit from these reduced home
  loan interest rates. at all.
• This slashing of rates makes this the best time
  for home loan transfer

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• If you currently have a housing loan and are
  thinking of transferring your loan due to lower
  interest rates at another provider this just
  might be the right time to do so.
• Here are some factors that would help you decide
  whether you should opt for a home loan balance
  transfer now
• Savings is the main reason for transferring home
  loans. But make sure that you opt for a home loan
  balance transfer only if the total savings in
  interest payout is substantially higher than the
  cost incurred while transferring the loan.

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• Usually, the new lender will charge various fees,
  such as conversion fee, processing fees and
  administrative charges during the loan transfer
• Transferring your home loan to a new lender is
  similar to availing a fresh loan, where the new
  lender will have its own set of terms and
  conditions.
• You can use it to re-set your loan EMI and tenure
  and top up as well.

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• Opt for a home loan transfer if your existing
  lender is not allowing you to reset the terms and
  conditions of your loan.
• Usually banks and NBFCs provide top up loans to
  existing borrowers.
• These are just like personal loans but their
  interest rates are lower than a separate personal
  loan.
• One may require a top up in case of funds
  required for an emergency or in case of a home
  loan for renovations.

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• Transfer your loan only if your current provider
  is not allowing you a top or if the new provider
  is offering you a better rate.
• One needs to carefully consider the
  aforementioned factors to have a hassle free home
  loan bank transfer process.
• You can also gain advice from your personal
  financial advisor on home loan transfers and
  similar processes or you can avail guides online.