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" 1. Everything you need to know about home loan balance transfer "

Home loan balance transfer is the process of transferring an existing loan to another bank or NBFC, because the borrower is getting better rates or services there

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" 1. Everything you need to know about home loan balance transfer "

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  1. Everything you need to know about Home Loan Balance Transfer

  2. Home Loan balance transfer: Everything You Should Know • Home loan balance transfer is the process of transferring an existing loan to another bank or NBFC, because the borrower is getting better rates or services there. • After demonetization a lot of banks have reduced their home loan interest rates. • Leading this set of banks is SBI who has reduced their housing loan interest rates by 50 basis points making their current rate is 8.5 per cent.

  3. Following SBI other banks and NBFCs too have reduced their rates, one whom has reduced its housing loan interest rates by 45 basis points. • These rate cuts will mainly benefit new borrowers. But this doesn’t mean that existing borrowers cannot benefit from these reduced home loan interest rates. at all. • This slashing of rates makes this the best time for home loan transfer

  4. If you currently have a housing loan and are thinking of transferring your loan due to lower interest rates at another provider this just might be the right time to do so. • Here are some factors that would help you decide whether you should opt for a home loan balance transfer now: • Savings is the main reason for transferring home loans. But make sure that you opt for a home loan balance transfer only if the total savings in interest payout is substantially higher than the cost incurred while transferring the loan.

  5. Usually, the new lender will charge various fees, such as conversion fee, processing fees and administrative charges during the loan transfer • Transferring your home loan to a new lender is similar to availing a fresh loan, where the new lender will have its own set of terms and conditions. • You can use it to re-set your loan EMI and tenure and top up as well.

  6. Opt for a home loan transferif your existing lender is not allowing you to reset the terms and conditions of your loan. • Usually banks and NBFCs provide top up loans to existing borrowers. • These are just like personal loans but their interest rates are lower than a separate personal loan. • One may require a top up in case of funds required for an emergency or in case of a home loan for renovations.

  7. Transfer your loan only if your current provider is not allowing you a top or if the new provider is offering you a better rate. • One needs to carefully consider the aforementioned factors to have a hassle free home loan bank transfer process. • You can also gain advice from your personal financial advisor on home loan transfers and similar processes or you can avail guides online.

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