You might have taken a home loan a few years ago and now find better loan plans. This is because financial institutions keep coming out with new plans with revised terms to attract more borrowers. But this does not mean that you have to miss out on a better deal. It is possible to go for a home loan balance transfer to enjoy the benefits of a better loan plan. This involves transferring the outstanding loan amount from one lender to another.
If you are looking to learn more about a home loan balance transfer, here is a list of the ultimate reasons why it is the best choice for borrowers who are looking for a better home loan plan:
- The lower interest rate can help reduce your loan’s EMI payments
One of the main reasons borrowers look to transfer their home loans is because of the interest rate. There have been cases where borrowers have struggled to repay their home loans, and often, the reason is that they are finding difficulty in affording the interest rate. Now, even a slight reduction in the interest rate of the loan can have a significant impact on its EMIs. This can ease the loan’s repayment as well as help in saving money on interest.
- Lenders can offer a better repayment tenure
You may find it difficult to make room for any savings with your current home loan repayment plan. Now, going for a home loan balance transfer can help. While the revised interest rate can definitely help in easing the EMI payments, the new lender can also offer a better tenure. There have been cases where lenders have offered extended repayment tenures to borrowers transferring their home loans. This further helps in reducing the monthly instalments of the loan. While applying for a home loan, borrowers use a home loan EMI calculator to find a suitable loan plan. It is also important to make use of a home loan transfer calculator to understand how the revised tenure benefits your budget.
- You can get a top-up loan
Many borrowers are unaware of the fact that they can get a top-up loan by opting for a home loan balance transfer. This is a great benefit for those who are in need of additional funds apart from trying to ease the repayment of their loan’s monthly instalments. The top-up loan that the new lender offers can be used for any personal expenses. It can be repaid along with the existing home loan, so make sure to keep this in mind while using a home loan balance transfer calculator.
Therefore, these are the key benefits of going for a home loan balance transfer. Before applying for this transfer, make sure to speak with the lender about the additional charges involved in transferring the loan. This will help in understanding whether refinancing your home loan is a good financial move.
