An engineering professional in Amritsar, was in the process of a Home Loan application after considering the market and assessing his affordability so that the family could live in own home.
They have been living in a rented apartment for years and the time has come for them to live in own home.
Thanks to a Housing Loan that he was about to avail, the dream was finally on its way towards to be realized and lived.
His application got approved as he had a good creditworthiness, the loan amount was disbursed, he got the possession of a home he wanted to purchase and in 10 days, the family finally shifted to their own abode much to everyone’s delight.
He started paying the Home Loan EMIs, and everything was going well unless it was the second year of the Housing Loan. He realized that for the past 1 year, he was paying a higher Home Loan interest compared to his colleague Shashi. He was left red-faced because he thought that he would have saved an amount enough to use for other needs.
He was in a fix unless Shashi advised him considering a Home Loan balance transfer with a new lender offering a reduced Home Loan interest.
He thought whether if it was a right time to go for the Home Loan balance transfer.
If you are confused like him, let’s provide some situations or time when it is the right moment to transfer a Home Loan account.
Best Time to Avail A Home Loan Balance Transfer
- When Home Loan interest rates are low
You should know that Home Loan interest rate can fluctuate gradually over time. Thus, do a regular check on a third-party website and compare all offers of the lender and apply for one and embark on a monthly saving.
- When you have just started to repay your Home Loan
The best time to make the most of the Home Loan balance transfer service is at the start of your repayment period. Your House Loan will go on for an extended period and consume a larger portion of the monthly income for years. Thus, it would be prudent to opt for a Home Loan balance transfer if you see a lender offering a good deal on a Housing Loan interest rate.
- In case your top-up loan is rejected
Lenders provide their existing Housing Loan customers with a top-up loan provision to avail another loan to cover other significant life goals. If you come to know that your lender has not approved your top-up loan or sanctioned it at a higher interest rate, switch your Home Loan. A top-up loan will help you avail another loan to the tune of Rs.50 lakh at a lower rate. Opt for a lender who offers you the package as per your preferences.
- To renegotiate an existing Home Loan terms
When you see that some terms of your loan agreement have not been abided, you can renegotiate the terms with your existing lender. If you don’t see it going your way, you can opt for a Home Loan balance transfer and get to avail better terms and conditions of the House Loan. Always know that anything that lowers down your interest, EMIs, prepayment, processing fees or anything else should be your goal because you want to save, right?
The Bottom Line
You just analyzed or saw some of the situations that may help you decide that When you need to transfer your Home Loan?. If you have an existing Home Loan, check your interest rate today and know if you are saving anything or splurging! Go to a third-party website, compare all lenders’ offers and reassess your case! All the best!