Buying a house is very expensive and a home loan can help an individual to do so without taking a toll on their pocket. It is almost impossible to buy a house in one shot as one would have had to save up for many years and also spending such a high amount in one go can affect the other finances one needs to look after.
A home loan balance transfer is done when a person has taken a home loan from a particular lender and wishes to transfer the outstanding loan amount to another lender who provides a lower rate of interest and better service when compared to the current lender. This is done to help save money in the long run as one can save up to 5% to 8% on the EMIs by doing so. This process can be executed easily with the help of a home loan balance transfer application and paying the processing fee with the current bank.
To apply for a home loan balance transfer, one must consult the existing lending bank and receive a no objection certificate for the home loan balance transfer. The current bank will then provide a No Objection Certificate (NOC) along with the details of the current outstanding loan amount. The No Objection Certificate and outstanding details must then be submitted to the new bank. There is a small fee that must be paid for the home loan balance transfer and then the previous bank will clear all your payments and the new EMI payments will then need to be made to the new lending bank.
A home loan balance transfer is very beneficial if the interest rate difference is very vast as this can help the individual save a lot in the long run. If the interest rates vary mildly, then it might not be very beneficial as the individual will need to pay a processing fee and other small charges, thereby increasing the cost of the loan.
In some cases, you can also get a top up loan along with your home loan balance transfer and even an extended tenure for the same. This is also very beneficial to customers who would like this added benefit for personal reasons.
To apply for a home loan balance transfer, click here.