Home loan balance transfer, also known as home loan refinancing, is a facility that borrowers can use to transfer their remaining home loan amount to another lender for better terms and conditions on their loan. Generally, borrowers transfer their home loan to another lender to benefit from lower home loan interest rates.
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However, in some cases, home loan borrowers may also opt for a home loan refinance to benefit from a longer repayment tenor or to change their interest rate.
Furthermore, with home loan balance transfer, borrowers can avail of a top-up home loan. This top-up loan comes with end-use flexibility and can be used to meet any housing-related needs. These benefits make home loan balance transfer a useful option among home loan borrowers.
How to Calculate Benefits Using a Home Loan Balance Transfer Calculator
The home loan balance transfer calculator is an online tool that calculates and displays the savings one can make by availing of the balance transfer facility. Simply, select any online home loan eligibility calculator you wish to use. Most lenders host this online tool on their website.
Things to Keep in Mind When Opting for a Home Loan Balance Transfer
Borrowers should keep the following things in mind while opting for a balance transfer:
– Before applying for a home loan balance transfer, it can be helpful to use a home loan balance transfer calculator to estimate the savings in advance. The calculator is an easy-to-use and reliable tool and helps to decide whether a home loan refinance would be beneficial. One can use the Bajaj Housing Finance Home Loan Balance Transfer Calculator to calculate their potential savings through a balance transfer.
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– To benefit from a lower interest rate from a home loan refinance, it is better to check the charges involved in the process. A home loan balance transfer involves a processing fee.
– For a home loan balance transfer to prove profitable, the new interest rate should be lower than the current interest rate. Also, opting for a home loan balance is beneficial during the early years of loan tenure because initially, a majority of the EMI amount goes into paying the interest.
Benefits of a Home Loan Balance Transfer
By availing of a home loan balance transfer, you can make use of the following benefits:
– Lower Interest Rate: By transferring your home loan to another lender, you may be able to secure a lower interest rate, which can lead to significant savings over the loan tenure.
– Improved Loan Terms: Transferring your home loan allows you to negotiate better loan terms, such as longer tenors or EMIs, which can help you manage your financial expenses.
– Top-up Facility: Some lenders offer a top-up loan facility along with a balance transfer, allowing you to borrow additional funds for purposes such as home renovation.
Homebuyers can avail of a home loan balance transfer facility by transferring their existing home loan to a new lender for better terms such as lower interest rates or longer repayment tenors.
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With this, you can also avail of a top-up loan facility that allows you to get additional funds to meet housing-related expenses.
