It is no surprise that buying a house is difficult in today’s times. With the current real estate prices, most homebuyers find it almost impossible to purchase houses without some kind of financial support. This is why most people apply for home loans in order to get the financial assistance that they need. Now, while a home loan is a great solution, do note that lenders keep updating their home loan plans. This means that if a borrower has taken a home loan a few years back, it is quite possible for them to find current home loan deals offering much better terms.
In such cases, the borrower can always apply for a home loan balance transfer. There are some cases where borrowers struggle with paying off the monthly instalments of their home loans, and this is often due to the high interest rate that they are stuck with. With a home loan balance transfer, borrowers can repay the remaining loan amount with a lower interest rate offered by the new lender.
Never heard of a home loan balance transfer before? Take a look at how borrowers can benefit by transferring their home loans:
- Lower home loan balance transfer interest rate
This is one of the main reasons why borrowers choose to transfer their home loans to new lenders. Even if the new lender is offering a slightly lower home loan balance transfer interest rate than the existing rate, it can still make a significant difference to the overall cost of the loan. A lower housing loan interest rate can also lower the home loan EMI payments, which can give a boost to monthly savings.
- Top-up loan
Some borrowers might be in need of additional financial assistance for personal reasons. With a home loan balance transfer, the new lender can also offer a top-up loan to the borrower. This proves to be a great deal for the borrower as they are getting better terms as well as additional funds for their expenses.
- Convenient repayment tenure
Some borrowers might be struggling to pay off the monthly instalments of their home loans because of their current repayment tenure. These borrowers can choose to opt for a home loan balance transfer as the new lender can offer them a more suitable repayment tenure. This would help in easing their EMI payments too.
- Better service by the new lender
In some cases, borrowers are simply unsatisfied with the services of their current lender. Thus, if the borrower is looking for a lender that provides better customer service, they can transfer their home loan to a financial institution that is better known for their services.
So, these are some of the benefits that a borrower can enjoy by transferring their home loan from one lender to another. Now, before opting for this transfer, it is advisable to make use of a home loan balance transfer calculator. This calculator will help in understanding the loan amount that one would be able to save after transferring their home loan. This will make it easier in understanding whether refinancing the home loan would be a good option.