Benefits of Home Loan Balance Transfer
Home loan balance transfer is a practicable option for investors to change in one lender to some other that offers lower interest levels. The brand new lender approves the takeover of your house loan and pays the oustanding amount owing to the existing lender. Post obtaining the pending amount, the prevailing lender releases the house documents and also issues a no due certificate to the borrower. These documents are paid to the new financier. Once this technique is complete, you need to pay all the rest of the future Equated MONTHLY PAYMENTS(EMIs) to the new lender according to their interest norms. In this program, you close the old mortgage loan account and open a fresh account with some other lender with better benefits like lower Interest (ROI), lower tenure etc.
Features of a mortgage balance transfer:
Balance Takeover (BT) of your house loan is add up to the procedure of finding a new home loan.
Your house loan is qualified to receive a takeover only following a certain period.
When another bank gets control your mortgage loan, they transfer your outstanding principal total the prevailing lender.
This technique usually involves nil takeover charges with your existing lender (when loan is obtained in individual capacity), although not fixed and could vary with different FINANCE INSTITUTIONS.
Before considering mortgage loan transfer, you should maintain a good history of repayment with the existing lender.
Some FINANCE INSTITUTIONS additionally require a good credit history and history before approving such transfer.
Futher, this balance transfer also offers a host of benefits:
Lower interest levels:
The most frequent reason behind opting a mortgage transfer is reduced interest levels. Decrease in ROI brings about lower EMI and therefore more monthly savings. It could also decrease the overall tenure of your house loan.
Good repayment background gets you good Interest (ROI):
When deciding on transfer, you can negotiate the conditions and conditions of your house loan by citing your history of payments, your credit history, and other points. This might assist you in finding a lesser interest, or better benefits than your present lender.
You may get a top-up loan:
Many finance institutions give you a top-up loan if you are transferring your mortgage loan to them. You may avail these home loan at competitive rates and utilize them to repay your immediate debts or make use of it for home renovation. Your present lender may not offer this top-up loan even though there can be an increase in the true estate price/ market value for your home. However, the new lender will definitely consider the existing market value of your premises as the benchmark and could also give you a top-up loan.
Apart from these reasons, you may even get better customer support, shorter duration of loan tenure, EMI and/or other a great many other benefits that aren’t provided by the existing lender.This balance transfer can also increase your credit history rating.
Nowadays, transferring a mortgage is quite a fairly easy process as banks have embraced modern tools. All information about the borrower, including their credit history, can be found online. This reduces the trouble of documentation and you could avail home loan balance transfer easily. Managing monthly expenses alongwith a running MORTGAGE LOAN EMIs could cause financial stress specially when you pay an increased interest rate. In order to avoid such hassles, opt for mortgage loan balance transfer to take pleasure from lower rates and shorter duration of EMIs or tenure.
