The process of transferring an outstanding amount of a home loan from one lender/ financial
Institution to a new one is termed as a Home loan balance transfer and this is done to acquire certain benefits. This does not involve any maximum limit to the transferred amount because the home loan balance, in its entirety, gets transferred to the new account.
This is very much helpful when you need extra amount for the completion of the building that you may have miscalculated by any chance. Not just the extra amount that you require, it may also be dissatisfactory experience with the current lender that may push you to opt for the home loan balance transfer option to another more reliable lender.
Now let us take a look at the benefits of this Home Loan Balance Transfer that is being talked about:
- When you transfer your home loan to a new lender, you may be able to avail the benefit of lowering your monthly EMI due to the reduction in the rate of interest which means that savings is definitely on the cards.
- In few cases, your income eligibility also gets increased as the parameter for calculation of the same varies from company to company.
- When you apply for a balance transfer, you are eligible for a top-up to add balance to the existing loan amount.
- Another reason why people go for the transfer is
when they are not happy with their existing lender or the support they provide. This can compel the customer to opt for Balance transfer.
- If you want to increase or reduce the duration of the home loan then you can do so while you opt for the home loan balance transfer.