No doubt! Home Loan balance transfer is a great option for people who are paying a high-interest rate towards their Home Loan or are unhappy with their lender due to other reasons. They can opt for Home Loan balance transfer, switch their lender, and save a significant amount of money. Plus, they can also obtain additional benefits like top-up loan etc. from the new lender.
Though all this sounds lucrative when you hear it, the same is only possible when you follow the checklist properly.
Review the Sales and Service of Your New Lender: You must have heard this popular phrase “A wolf in sheep's clothing”. The proverb perfectly fits the scenario. Therefore, taking the precautions seriously, you should review the sales and service of your new lender to get a knack of how you’ll be treated, and how quickly your issues will be resolved.
The Interest Rate: is it just a claim or the reality? While planning to opt for a balance transfer, you must remember - the applicable interest rate varies from one applicant to another. The chances of you getting the exact interest rate as in the proposal are quite rare due to various factors related to creditworthiness. Hence, before you set your hopes high, find out the exact interest rate you’ll be getting from your new lender.
In-depth Review of Terms and Conditions: Lastly, before you take any major decision, check all the terms and conditions in-depth. Also, don’t forget to check the additional charges like processing fee, maintenance charges etc. to understand if you’re really making the right decision.
Once you are done with the above mentioned checklist for Home Loan balance transfer, apply for it at any reputed bank or NBFC.