Home Loan Balance Transfer

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Home Loan Balance Transfer

Home Loan Balance Transfer helps you reduce your EMIs by moving your outstanding loan from other financial institutes to the one which offers lower interest rate.

Home Loan Balance Transfer or Refinancing or simply Balance Transfer is the process that allows you to benefit from the lower interest rate offered by the other lender. If you have an existing outstanding home loan with one borrower, you can make a home loan transfer, that is, shift the remainder amount to a different borrower who charges a lower rate of interest, the process is termed as a home loan balance transfer or refinancing. This unique home loan transfer service helps a customer avoid high applicable interest rates as listed by one home loan lender and migrate to a lower interest rate structure with another lender.

So why one would need a balance transfer? A home loan involves a significantly large amount of money and therefore, the interest rate on the loan is a matter of concern for everyone who decides to take a home loan. Home loan interest rates may range from 8.0 % to 12 % and one of the most common ways to reduce interest rates is to either talk to the bank that has provided you the loan to reduce it or go for a transfer of the balance on existing home loan or in layman terms, shift your home loan to a bank offering lesser rate.

Key Feature of Home Loan Balance Transfer

  • Transfer the outstanding balance of you existing home loan to another bank or from one lender to another.
  • There is a fee usually equal to 1% of the loan transferred that is payable to the new lender for home loan by the borrower.
  • In most cases, the home loan balance transfer application is treated similar to a new home loan application.
  • The balance transfer on an existing home loan can only be availed after a pre-determined time period as mentioned on the original loan agreement.
  • When the transfer is completed, the borrower owes the transferred principal loan amount plus applicable charges to the new lender instead of the original one.

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