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Should You Be Choosing a Home Loan Balance Transfer?

By Finserv MARKETS - Jun 3,2019
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Should You Be Choosing a Home Loan Balance Transfer?

Buying a home is every individual’s dream and making it a reality takes years of hard work and dedication. Most individuals buy a home only after getting a home loan. Paying off the home loan is also a journey in itself; as the interest rate is comparatively higher than other loans and it takes years to get to the principal amount. So, a lot of people during the course of their home loan, switch lenders if they find a better interest rate.

What is a home loan balance transfer?

home loan balance transfer is the process of transferring your home loan from one lender to another. In this process, the new lender pays off the outstanding loan amount to the old lender and the borrower has to start paying EMI to the new lender in the revised interest rate. But before you switch lenders there are a couple of pointers that you should keep in mind:

Lower EMI and Interest Rates

The primary reason to switch borrowers is to reduce the burden of huge EMIs. That is only possible if the rate of interest is low. So, the main reason is always to get a better interest rate that reduces the EMI debt significantly.

Better Terms of Repayment

Every lender has their own set of rules and regulations and loan pre-payment facilities that could offer a better deal than the current lender. Going carefully through all the terms and conditions, and understanding the provisions could get you a better deal.

Top-Up Loans

The other is a top-up loan which the new lender normally offers. This top-up loan can be used for clearing any existing debt, it can also be used for renovation or doing any extension work at your home. The top-up loan is always offered at a competitive rate and is not a burden on the pocket. Your old lender may not give you a top-up loan but the new lender will almost definitely will. So, avail the top-up loan and use it for your own benefit.

Most lenders offer you the balance transfer in the initial days of your home loan as it is more practical. Opting for a switch earlier into the loan gives you more chance to save more money and benefit from it in the longer duration. Apart from the EMI rate, look for an agreement that permits prepayment, foreclosure and switching to another lender with no penalties. And finally, after you have considered all factors then only, switch your home loan. Also check whether you are eligible for pmay subsidy in balance transfer.

With Finserv MARKETS, applying for a home loan balance transfer facility is easy, quick and completely hassle-free. What’s more? You get a plethora of other benefits like customized offers, top-up options and many more. So why wait? Head over to our website and apply for a Bajaj Finserv home loan balance transfer facility with us, today!

Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we works towards fulfilling all your personal and financial needs . What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.”

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522